SYDNEY (Reuters) – Australian household spending rose for a fifth straight month in February, data showed on Friday, but the gains were slim and overall growth remained modest as consumers struggled with cost-of-living pressures.
The Australian Bureau of Statistics’ monthly household spending indicator (MHSI) showed a seasonally adjusted rise of 0.2% in February from January, when it rose by 0.5%.
Annual growth was little changed at a sluggish 3.3%, having shown next to no improvement since hefty tax cuts were handed out in the middle of last year.
The data should help ease concerns at the Reserve Bank of Australia (RBA) that consumption might spike as inflation cooled and incomes recovered in the wake of the tax handouts.
Robert Ewing, ABS head of business statistics, said spending in February had been concentrated in food, recreation and eating out, while households cut back on healthcare, alcohol and tobacco.
The MHSI series will replace the current retail sales report from July and is much broader in scope covering 68% of household consumption, more than double the retail survey.
It includes spending on many services and should offer a better guide on what to expect from household consumption in the gross domestic product report.
(Reporting by Wayne Cole; Editing by Jamie Freed)
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