Aussie mortgage holders spending less as higher rates bite: CommBank

They bucked the trend of Australian households spending more in May.

Australians with mortgages have shown signs of slowing down spending in May due to more costs from higher interest rates, according to data from the Commonwealth Bank of Australia (CommBank).

Renters have taken the lead, recording the fastest pace of annual spending growth in May amongst other households, CommBank said.

Overall, Australia household spending edged higher in May, returning to modest growth after a dip in April, CommBank said.

“While higher interest rates and inflation are weighing on households, consumers were willing to spend on experiences like travel, dining and events during the month of May,” said Belinda Allen, CommBank head of Australian economics.

Australians lifted spending on discretionary items despite ongoing cost of living pressures, it said.