Household Spending ‘Surprisingly Soft’ Despite Tax Cuts

Households spent more on essentials such as groceries and healthcare last month, with overall spending down in a sign of a still-cautious consumer. The Australian Bureau of Statistics’ (ABS) household spending indicator fell 0.1 percent in September. Less went towards new clothes and shoes, with the category down 1.8 percent, reversing the same-size gain in August. ABS head of business statistics Robert Ewing said the 0.6 percent fall in transport spending was influenced by lower prices at the petrol pump as well as reduced spending on new cars. “Rises in non-discretionary categories such as food and health, which rose by 0.5 percent and 0.6 percent respectively, partly offset these falls,” he said....