The CommBank HSI Index analyses month-to-month spending patterns using anonymised payments data from about seven million CBA customers, representing roughly 30% of all consumer transactions in Australia.
On a year-on-year basis, household spending has risen by 5%. The largest annual increases were in communications and digital (10.6%), utilities (9.4%), recreation (8.3%), and hospitality (7.7%). Transport spending remained lower, down 1.6%, reflecting a decrease in petrol prices.
The economic environment remains favourable for households. The Reserve Bank of Australia has reduced the cash rate three times in 2025, while inflation has moderated and last year’s tax cuts continue to support spending. Recent GDP figures show that the Australian economy is growing faster than expected, driven by stronger consumer activity.
Allen said CommBank expects only one more rate reduction from the Reserve Bank this cycle. “With the broader economy showing signs of resilience and the consumer returning to a more solid footing, we don’t see the need for the RBA to go much further. We continue to expect just one more cut in November, but no change at the RBA’s September meeting.
“As we look to 2026, we expect to see both consumer spending and the broader economy continue to improve back to around the rate of potential economic growth.”