Australian Household Spending Stalls in August, Missing Expectations Ahead of RBA Decision

Australian household spending was flat at 0.0% month-over-month in August, falling short of the forecasted 0.4% increase and moderating annual growth to 6.8%. The headline figure followed a revised 1.1% gain in July and masked broader weakness, as spending excluding fuel contracted 0.3%. An 8.1% surge in fuel spending following the restoration of the fuel excise duty propped up nominal figures, while real fuel volumes fell 0.5%. Discretionary spending declined 0.3%, whereas non-discretionary spending rose 0.6%. The weak data arrived ahead of the Reserve Bank of Australia's rate decision, where a 25-basis-point hike to 4.60% is widely expected.