Consumer spending remained solid in September

21 October 2026
Economy & Markets 

• Consumer spending rose 1.1% in September and 9.0% over the year.

• Higher spending on essentials was driven by higher fuel costs, while spending ex-fuel still increased 0.7% over the month.

• Discretionary spending also rose (1.0% mom) driven by spending on recreation and culture (major sporting events).

• Consumer spending resilience contrasts with a weaker business backdrop. 

Australian consumer spending rose solidly in September, reflecting higher fuel costs, while discretionary spending also remained resilient, according to NAB’s Consumer Spend Trend.

Total spending rose 1.1% over the month and 9.0% over the year. Fuel spending increased 8.3% in September and was 31.1% higher than a year earlier, reflecting higher retail prices as the Middle East energy shock continued to flow through to retail prices. Excluding fuel, spending still rose 0.7% over the month. Non-discretionary spending increased 1.2% in September and 9.4% over the year. 

The report also shows resilience in discretionary spending which rose 1.0% over the month and 8.8% over the year, despite household spend on fuel continuing to increase. 

NAB Head of Australian Economics Gareth Spence said the figures pointed to continued household resilience.  

“Spending has held up better than might have been expected given the increase in essential costs,” Mr Spence said.

“Inflation is likely contributing to the result, but spending growth remained strong over the month, suggesting consumers are continuing to spend despite renewed pressure on household budgets.”

Recreation and personal services spending rose 6.0% over the month, supported by major sporting events, while personal goods spending increased 1.3%. Household goods spending was broadly unchanged at 0.1%.

Mr Spence said the consumer data contrasted with the more subdued picture in NAB’s September Monthly Business Survey. 

“The resilience in consumer spending sits against a weaker business backdrop,” Mr Spence said.

“Consumers are still spending, but businesses appear more cautious about the outlook. That contrast will be important to watch, particularly as higher fuel and other input costs continue to flow through the economy.”

Spending increased across most states and territories in September, led by Western Australia, up 1.7%, and Victoria, up 1.5%. Spending declined 0.3% in Tasmania and the Northern Territory.

Read the full NAB Consumer Spend Trend September report here (PDF, 713KB).