Australian family spending slows as journey fades and gasoline prices chunk

Australian family spending has slowed by means of 2026, with Commonwealth Bank of Australia (CBA) information pointing to a broad-based easing in consumption as journey normalises and better gasoline costs stress family budgets.

CBA’s newest Economic Insights report discovered credit score and debit card spending slowed additional by means of August and early September, extending a uneven sample seen throughout a lot of the yr. The financial institution expects its extra complete CommBank Household Spending Insights collection, due on September 22, to supply additional element on August developments.

Despite the slowdown, CBA famous that a number of short-term components weighing on spending within the June quarter had begun to unwind, whereas retail spending remained comparatively resilient.

Travel spending returns to regular

Travel was one of many clearest sources of weak point.

CBA information confirmed spending on industrial airfares and cruise strains had fallen again in direction of extra typical ranges after a powerful June quarter, when abroad journey spending was a significant drag on family consumption within the nationwide accounts.

Short-term outbound journey additionally seemed to be normalising, with annual development in Australians travelling abroad remaining decrease than final yr.

Accommodation spending remained under 2025 ranges for many of 2026, though on-line journey reserving expenditure had risen above final yr’s ranges.

Retail stays comparatively resilient

Retail spending has held up higher than another classes.

CBA discovered retail expenditure as a share of total spending was broadly monitoring 2025 ranges, together with throughout discretionary areas corresponding to clothes, equipment and electronics.

Department retailer spending, which incorporates purchases by means of on-line marketplaces, was operating above final yr’s ranges, whereas homewares and equipment spending confirmed some weak point.

Combined with continued strong car gross sales, CBA interpreted the information as suggesting there had to this point been solely a restricted influence on family items spending from housing market turnover or wealth results.

Fuel prices add stress

Higher petrol costs have emerged as one other headwind.

Petrol station spending as a share of family expenditure moved above 2025 ranges from early August following the expiry of gasoline excise aid and escalation within the Iran battle.

CBA famous gasoline costs had risen once more because the newest information was collected, suggesting petrol expenditure was prone to stay elevated and put additional stress on discretionary spending.

Vehicle demand, nonetheless, remained sturdy. Passenger car gross sales rose 8.3% year-on-year in August, whereas electrical autos accounted for round 1 / 4 of recent car gross sales, up 171% from August 2025.

Spending on EV charging was additionally materially greater than a yr earlier, with the ACT recording the very best share amongst states and territories.

Overall, CBA’s information factors to a shopper sector that’s slowing slightly than collapsing, with spending weak point unfold throughout classes however retail exercise displaying few indicators of a pointy deterioration.