Australians are holding onto essentials such as home insurance but cutting discretionary spending, according to CommBank.
In the year to May, Insurance led the way with an 8.6% increase, while utilities, one of 12 categories tracked by the bank’s monthly Household Spending Insights index, was second with a 7.1% rise.
CommBank says the largest increases in insurance spending in the 12-month period were in home and motor cover, health insurance and pet cover, with travel and life insurance recording falls over the same period.
Senior Economist Belinda Allen says this spending trend suggests that consumers are still needing to make spending choices and are prioritising essential purchases.
Household or consumer spending is tracked closely because it is the largest component of the nation’s economy, accounting for about half of GDP.
