Queensland leads nation for household spending growth

Queenslanders are cashed up and spending big on household items despite the cost-of-living crisis, new data reveals.

Cashed-up Queenslanders are Australia’s most enthusiastic spenders with the state leading the nation for household spending growth despite the cost-of-living crisis.

Australian Bureau of Statistics data released on Tuesday revealed household spending in Queensland had increased 10.4 per cent through the year to May.

Tracked through bank transaction data, it showed Queenslanders had increased their spending through the year on clothing and footwear (18.7 per cent), dining (18.4 per cent) and miscellaneous good and services (17.8 per cent).

Isabella Stroud, 20 of New Farm, says some expenses are non-negotiable despite the cost of living crisis. Picture: Liam Kidston

Leading independent economist Saul Eslake said the data was probably strongest in Queensland due in part to population growth.

“We know that there has been significant migration to Queensland from other states, and all else being equal, population is a driver of economic growth and of spending,” he said.

“Across the whole of Australia, the strong growth in spending tell you something more broadly about the strength of demand.”

Mr Eslake theorised that despite increased attention on the cost-of-living crunch, there were many Australians still doing well.

“More people will soon find things tough, but as of May people had lots of money to spend and they were spending it,” he said.

Nationally, the largest increase in household spending was for services.

ABS head of macroeconomic statistics Jacqui Vitas said this was driven by transport as air travel recovered and by higher petrol prices increasing vehicle running costs.

Isabella Stroud, 20, said some products and activities were non-negotiable expenses, regardless of what they cost.

“You always need new clothes, particularly when you’re growing up and entering the workforce, but also you want to keep up with trends and what is happening,” she said.

“But also going out to dinners or out at night, you get a bit of a fear of missing out if your friends are out and you’re not, so I don’t think I’d stay home just because of a cost increase.”