Australian consumer spending remained steady in May, supported by a recovery in discretionary categories including travel, according to the latest NAB Consumer Spend Trend report.

Total spending rose 1.1 per cent in May, rebounding from an April pullback, and was 6.5 per cent higher over the year. Excluding fuel, spending rose 1.6 per cent in the month and 6.6 per cent over the year.

Discretionary spending rose 2.4 per cent in May, supported by stronger travel, hospitality and other discretionary services spending.

Hotel, travel and transport spending rebounded 9.7 per cent in May, reversing the decline seen in April.

Cafe and restaurant spending rose 2.9 per cent in May to be 7.6 per cent higher over the year.

Spending at cafés, restaurants and pubs in NSW rose 7.1 per cent across the year.

NAB said the strength in May suggests households continued to spend on eating out and related hospitality services despite broader cost-of-living pressures.

NAB Head of Australian Economics Gareth Spence said: “Consumer spending rebounded in May and remains positive over the year, suggesting household demand has been resilient despite ongoing cost pressures,” Spence said.

“The monthly lift was supported by a recovery in discretionary spending, including travel, hospitality and other services.”

“While spending growth has slowed from the pace seen late last year, the data suggest households have not pulled back sharply.”

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