Commbank Research Shows EOFY Sales Fail To Spur Normal June Spending Spree

Australian household spending rose just 0.3 per cent in June, with End of Financial Year sales failing to deliver the same boost seen in 2025, according to the CommBank Household Spending Insights (HSI) Index.

The data suggests that inflation and higher-for-longer interest rates are leading to a pullback by consumers, with retail spending easing to 0.2 per cent in June from 0.6 per cent in May.

Gains were recorded across 10 of the 12 spending categories tracked by the index, led by utilities at 1.4 per cent and education at 1.1 per cent. The utilities increase was driven by seasonality and the ending of government rebates, while the education figure reflected the timing of university payments.

Spending on household goods was soft despite the EOFY sales period, while hospitality spending rose only marginally by 0.1 per cent in June compared to 0.9 per cent growth in May. Sporting events hosted through June did little to lift spending growth.

“The softening we are seeing in the CommBank HSI is broadly in line with our expectation that household spending will slow over the remainder of this year,” CommBank Head of Australian Economics Belinda Allen said.

“Slower household income growth, together with the ‘wealth effect’ from a downturn in the housing market is expected to weigh on spending. However, consumers may dip into their savings buffers which would see spending slow less than we expect.”

Recreation spending pulls back

June saw a rapid deceleration in seasonally adjusted recreation spending, dropping from 2.3 per cent growth in May to just 0.2 per cent.

Lower spending on ski resorts, camping stores, museums, galleries and tour operators weighed on the category. Poor weather at the start of the ski season may have contributed to a notable fall in ski resort spending compared to 2025.

Annual gains in online travel bookings, commercial airlines, fitness clubs, gyms, travel agencies and sporting goods stores helped keep the category in positive territory.

Allen noted that the past three months had seen volatile movements in the HSI due to fluctuating petrol prices, seasonality around bill payments for education and utilities and the timing of sales events.

“The Iran war, the downturn in the housing market and higher interest rates continue to weigh on consumer spending,” she added.

“For the first six months of 2026, the average monthly increase is sitting at 0.3 per cent, slightly lower than the 0.5 per cent average through 2025. With the rate of inflation higher, it does suggest the volume of spending growth has softened.”

Older Australians outspend younger cohorts

Across age groups, spending growth was at its highest among those aged 65 and over, up 10.1 per cent a year in the 12 months to June 2026. The 55-64 cohort recorded growth of 6.2 per cent a year, while spending among 18-24-year-olds rose 5.4 per cent.

Spending growth was softer across age groups more likely to hold a mortgage. The 35-44 and 45-54 cohorts each grew at 4.5 per cent per year, while 25-34-year-olds recorded just 4.2 per cent growth.

Compared to June 2025, annual spending growth moderated across almost all age groups. The most pronounced slowdown was among 18-24-year-olds, where growth eased from 9.9 per cent per year in 2025 to 5.4 per cent in June 2026.

Regional spending outpaces metro areas

Annual regional household spending growth accelerated in the year to June 2026 compared to the prior year, while spending growth in metro areas slowed.

Regional Queensland and regional Western Australia were the top performers over the year, while metro New South Wales, the ACT and metro Victoria were the weakest.

“Weaker spending in metro areas of NSW, Victoria and the ACT reflect the jurisdictions that recorded the weakest home price growth over the past 12 months, highlighting how the downturn in the housing market and higher interest rates are beginning to weigh on consumer spending,” Allen explained.

Regional outperformance partly reflects stronger population growth and demand, particularly in Queensland and Western Australia. However, the conflict in Iran may have also contributed, with regional areas more exposed to sharp increases in diesel prices compared to metro areas.

Last Updated on July 19, 2026 by Nick Ross