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The monthly CommBank Household Spending Insights (HSI) Index was flat in January, unchanged at 153.4, as consumers took a breather from opening their wallets following sale activity in the final months of 2024.  

Modest spending increases were seen across six of the 12 spending categories, with the most notable uplifts seen in spending on Motor vehicles (+1.5 per cent), Insurance (+1.2 per cent), and Health (+1.0 per cent).  

The biggest spending falls in January were in Education (-1.8 per cent), driven by reduced spending on universities, Hospitality (-1.0 per cent) and Household Goods (-0.9 per cent).

"The flat January HSI result was somewhat expected following the spike in spending we saw in the last three months of 2024 off the back of Black Friday, Cyber Monday and Boxing Day sales. Essentials made up the three highest spending categories in the month as consumers pulled back on discretionary spending,” CBA Senior Economist Belinda Allen said.

“We expect the RBA to lower interest rates at their first meeting of the year next week which will help provide a boost to consumer spending over the coming months. We anticipate a total of 100 basis points of monetary policy easing throughout 2025 to drive an improvement in the consumer spending pulse."

On an annual basis, homeowners with a mortgage (+3.0 per cent) have surprisingly seen a larger increase in spending compared to those who own their home outright (+2.8 per cent), while renters continue to lag (+2.0 per cent). 

“The increase in spending by those with a mortgage can be attributed to the fact that not only are this cohort likely at a stage of life where they’re spending on essential items, they’re still dedicating a significant share of their wallet to recreation and entertainment,” Belinda Allen concluded.

The CommBank HSI index tracks month-on-month data at a macro level and is based on de-identified payments data from approximately 7 million CBA customers, comprising roughly 30 per cent of all Australian consumer transactions.

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Things you should know

  • NOT INVESTMENT RESEARCH. The Commonwealth Bank ‘Household Spending Insights’ is not investment research and nor does it purport to make any recommendations. The Commonwealth Bank ‘Household Spending Insights’ has been prepared without taking into account your objectives, financial situation (including your capacity to bear loss), knowledge, experience or needs. You should not act on the information contained in this document. To the extent that you choose to make any investment decision after having read this document, you should not rely on it but consider its appropriateness and suitability to your own objectives, financial situation and needs, and, if appropriate, seek professional or independent financial advice, including tax and legal advice. The data used in the ‘Commbank Spending Insights’ series is a combination of CBA Data and publicly available Australian Bureau of Statistics (ABS), CoreLogic and Reserve Bank of Australia data. Any reference made to the term ‘CBA data’ means the proprietary data of the Bank that is sourced from the Bank’s internal systems and may include, but is not limited to, home loan data, credit card transaction data, merchant facility transaction data and applications for credit. All customer data used, or represented, in this report is de-identified before analysis and is used, and disclosed, in accordance with the Group’s Privacy Policy.