Australians continued spending spree as household costs jumped again in November

Black Friday spending and major events fuelled a shock spending boom in November, but experts says there are still questions over the financial position of Australian households.

Fresh figures released by the Australian Bureau of Statistics on Monday shows household spending was up 1 per cent for the month of November.

Overall, housing spending is now up 6.3 per cent over the previous 12 months.

Global X senior investment strategist Marc Jocum says the spending spree could have a negative impact on mortgage holders.

“It weakens the case for imminent easing and keeps upward pressure on rate expectations,” he said.

“Given household consumption accounts for roughly 60 per cent of Australia’s gross domestic product, markets will remain highly sensitive to whether this momentum persists into 2026, with any further upside surprises likely to reinforce a higher-for-longer rates environment.”

But Oxford Economics Australia head of economics research and global trade, Harry Murphy Cruise, said there were still question marks over the recent spending boom and whether it was due to a two-speed economy.

“Looking ahead, outright homeowners – benefiting from rising housing wealth and stronger interest income – will continue to spend, while mortgage holders and renters face tighter budgets and weaker confidence,” he said.

“That will see steady, but unspectacular, aggregate spending growth through this year.”

The November household spending figures covered the key Black Friday sales period as well as major events including the Oasis and Metallica concerts and the first Ashes Test.

Service spending rose 1.2 per cent due to the major events.

Black Friday sales helped lift goods spending with Australians spending 2.2 per cent more on furnishing and household equipment.

There was also a 2 per cent bump in clothing and footwear spending while recreation and culture added 1.7 per cent.

Monday’s data follows a surprising surge in October when household spending rose by 1.3 per cent in nominal terms.

This was the highest monthly increase since January, with spending across all nine categories.

Prior to the release, the major banks were split on how much more households spent.

ANZ had predicted household spending would rise by 0.6 per cent month-on-month, National Australia Bank suggested an increase of 0.5 per cent, while the Commonwealth Bank had expected a more modest 0.1 per cent boost to spending.