The CommBank Household Spending Insights (HSI) Index rose 0.6% in September, continuing the “consistently strong pace” of spending growth seen since March.

The annual pace of growth in the HSI now sits at 7.5% for the year.

CBA Head of Australian Economics Belinda Allen says the trend points to a more upbeat consumer backdrop.

“Momentum in household spending has been building since early 2025,” she says.

“Lower interest rates, moderating inflation and tax cuts last year have created a more favourable environment for consumers. Even when we strip out the impact of higher utility bills, spending remains solid across key categories.”

Eight of the 12 spending categories recorded gains in September, led by utilities (up 1.4%) and communications and digital (up 1.1%), the same top performers as August.

Communications and digital spending was boosted by the release of the new iPhone, alongside continued strength in online gaming and streaming services. The popularity of shows such as The Summer I Turned Pretty and major gaming releases kept Australians engaged across digital platforms and the growing use of AI.

Over the past year, spending on online gaming has risen 38%, while video streaming (31%) and computer stores (21%) have also seen significant gains. 

“We’re seeing consumers lean into at-home entertainment, whether that’s a new phone upgrade, a binge-worthy series or gaming with friends,” says Ms Allen. “Digital spending is now a structural feature of household budgets, not a passing trend.”

Utilities spending continues to climb as energy rebates are scaled back, making it the top-performing category over the past year, up 16.6% year-on-year. Other gains included health (up 1%), insurance (up 0.8%), household goods and services (up 0.7%), and hospitality (up 0.6%).

Transport was flat for the month, while motor vehicles (down 0.2%), education (down 0.1%), and recreation (down 0.1%) recorded small declines.

“The consistent flow of data showing spending growth supports our view that Australia’s consumer cycle is turning upward,” says Ms Allen. 

“While households are still navigating cost-of-living pressures, the foundations for spending growth are in place.

“The question now is whether this momentum will extend into summer or if households will revert to a more cautious stance given low levels of consumer sentiment.

“Our base case remains that the last cut to the cash rate from the Reserve Bank of Australia will come in February.”