Latest news with #householdspending
The Guardian
16 hours ago
- Business
- The Guardian
Five ways Australians' spending, housing and dating habits have changed over the last 25 years
The way Australians live has changed in the last 25 years, as soaring house prices have forced some young people to live with parents longer, and others to move rentals more often. New research from the e61 Institute breaks down why some Australians are more reluctant to move house, while consulting firm KPMG has looked at how household spending has changed by generation. Each explored data from the Australian Bureau of Statistics (ABS). Here are five ways Australians' lifestyles have changed – and how it's affecting the housing crisis. Fewer Australians are moving house as often as they did before the 2000s, mostly because young people are more likely to live with their parents, e61 research found. This is linked to more 18 to 24-year-olds trying to save money, potentially for a deposit, before moving out. Sign up for Guardian Australia's breaking news email The trend of living in the family home for longer is also because fewer young people are in relationships, says Nick Garvin, research manager at e61. 'It is possible that housing costs are contributing to this drop in moving out with partners, but we are also seeing a general drop in the number of 18 to 24-year-olds that have a partner at all.' The percentage of young men and women living with parents increased from 53% and 42%, respectively, in the 1990s to 60% and 53% by the early pandemic years. Younger Australians entering the workforce are prioritising living on their own, rather than with partners or in share houses, meaning their spend on furniture has increased. Households headed by 25 to 34-year-olds spent an extra $2,161 each year on appliances and furniture in 2024, compared to 2014, according to KPMG. Homewares spending rose as a share of that age group's budget, accounting for inflation, according to KPMG urban economist Terry Rawnsley. 'Ten years ago, young people were more likely to be living in a share house and so would be sharing a fridge,' Rawnsley says. One-person homes accounted for more than 20% of all 25 to 34-year-olds' households in 2024, up from 15% a decade earlier, boosting spending at furniture giants like Temple and Webster. Rents took up a smaller average share of young households' spending in 2024 than 2014, as people moved away from shared living to smaller one-bedroom apartments with cheaper overall rents, KPMG found. Falling home ownership and rising rents have forced a growing share of young families to move around more often. The share of 25 to 44-year-olds moving home in the last 12 months has risen since 2011, in line with the rising share of people who don't own their own home, e61's analysis of census data found. Garvin says rapid price growth over the 2010s forced younger households to wait longer to save up deposits. Ongoing high prices could see yet more young workers move more often in coming years, he says. 'Renters move far more frequently than homeowners do, so that appears to be what's driving the pickup since 2011.' Millennials have worse access to housing and a smaller proportion own their own home than gen Xers did at the same age in 2014, ABS data shows. But those in the 35 to 44-year-old cohort in 2024 are on average spending $12,000 more to pay off home loans than their predecessors did a decade ago, KPMG found. 'There's lower home ownership, but the people who are getting into [homes] are spending more and more of their incomes on housing,' Rawnsley says. Older Australians with little to no mortgage debt and growing incomes have faced less pressure from the changing cost of living and instead picked up their spending on luxury goods. Growing numbers of Australians with ongoing work and tertiary qualifications moved into the 55 to 64-year-old bracket from 2014 to 2024, ABS data shows. Separate data shows the median 55 to 64-year-old household's wealth rose from $1m to more than $1.3m from 2014 to 2022. Rising incomes have gone straight to nonessential purchases such as recreational goods, KPMG says. Alcohol and cigarettes grew as a share of total expenditure for households in the 55 to 64-year-old group, while all other groups between the ages of 25 and 54 cut back, KPMG found. Older workers also dedicated more money to dining out, takeaway meals, clothing and footwear. 'These are people who've paid the mortgage off largely, they've got the kids out the door in a lot of cases, and they have that disposable income,' Rawnsley says. 'The younger baby boomers or the older [gen] Xers who might see themselves as having a treat of getting some designer footwear [are upgrading] from just having something on the rack to put on every day.'
NHK
06-06-2025
- Business
- NHK
Japan household spendng down as consumers skip big-ticket items
Household spending in Japan fell slightly in April as consumers refrained from buying big-ticket items like home appliances. An internal affairs ministry survey shows households of two or more people spent an average of about 325,717 yen, or over 2,200 dollars. That was down 0.1 percent from a year earlier in yen terms when adjusted for inflation. It was the first drop in two months. Spending on furniture and household goods declined 0.4 percent. Appliances such as air conditioners, washing machines and microwaves saw lower demand as consumers stayed budget conscious. Purchases of clothes and footwear dropped 2.1 percent. Unseasonably cold weather was said to dampen sales. Food expenditures rose 0.3 percent. That was the first increase in eight months. People bought more fresh vegetables including lettuce and tomatoes as their prices began to fall. Rice purchases also rose despite surging prices.
Japan Times
06-06-2025
- Business
- Japan Times
April household spending drop deals blow to Japan's shrinking economy
Japan's household spending unexpectedly declined in April as elevated inflation deterred discretionary spending, in a worrisome sign for policymakers after the economy began contracting even before U.S. tariff measures fully kicked in. Outlays by households, adjusted for inflation, fell 0.1% from a year earlier, the Ministry of Internal Affairs and Communications reported Friday. The result compared with a median estimate by economists of a 1.5% gain. The decline was led by health care and miscellaneous spending, while outlays jumped 10.9% for housing. The importance of consumer spending as an engine of growth in Japan has increased as U.S. President Donald Trump's tariff campaign deals a blow to factory output and exports. Extra duties on steel and aluminum took effect in March, with tariffs on autos and a broad tax on other products starting in April. Domestic demand will likely be a key factor in determining whether Japan can avoid a technical recession after the economy shrank in the first quarter. "The elevated cost of living is weighing down on consumer spending,' said Takeshi Minami, chief economist at Norinchukin Research Institute. "The price of essential items like food is rising so much that it makes households think twice about spending on other things.' Data released last month showed that the country's key inflation gauge accelerated in April to the fastest clip in more than two years, keeping price gains at or above the Bank of Japan's 2% target for more than three years. An indicator of consumer confidence advanced in May, ending a five-month streak of declines, but still remains near the lowest level in two years. Prime Minister Shigeru Ishiba is monitoring negative economic impacts from Trump's levies ahead of a key Upper House election likely to be held in July. With his support ratings still languishing, Ishiba's government has attempted to reduce the price of rice — which has been soaring — by releasing emergency stockpiles into the market. He is also pursuing a trade deal with the United States, as tariffs continue to hit Japan's economy. Economists surveyed forecast the economy will grow by 0.2% on an annualized basis this quarter after it contracted by 0.7% in the January-March period. BOJ Gov. Kazuo Ueda has also pledged to closely watch the strength in personal outlays while indicating a pause in the bank's campaign to raise interest rates for now amid "extremely' high uncertainties. The BOJ is widely expected to hold when it next sets policy on June 17. "Consumer spending is unlikely to help drive the economy when the impact of tariffs is expected to hit external demand,' said Norinchukin's Minami. "Today's data shows that the BOJ doesn't have to rush to raise rates. There's no virtuous cycle between wages and inflation. I expect the next hike will come around October.'
Bloomberg
06-06-2025
- Business
- Bloomberg
Japan's Household Spending Falls as Inflation Stays Elevated
Japan's household spending unexpectedly declined in April as elevated inflation deterred discretionary spending, in a worrisome sign for policymakers after the economy began contracting even before US tariff measures fully kicked in. Outlays by households, adjusted for inflation, fell 0.1% from a year earlier, the Ministry of Internal Affairs and Communications reported Friday. The result compared with the median economist estimate of a 1.5% gain. The decline was led by health care and miscellaneous spending.
Reuters
06-06-2025
- Business
- Reuters
Japan April household spending unexpectedly falls
TOKYO, June 6 (Reuters) - Japanese household spending unexpectedly fell in April, as consumers tightened their purse strings in the face of higher prices. Consumer spending fell 0.1% in April from a year earlier, data from the internal affairs ministry showed on Friday. That was worse than the median market forecast for 1.4% growth and March's 2.1% increase. On a seasonally adjusted, month-on-month basis, spending declined 1.8%, versus an estimated 0.8% fall. Consumption and wage trends are among key factors the Bank of Japan is watching to gauge economic strength and decide how soon to raise interest rates. Hefty pay hikes are seen as essential to counter sharp increases in the cost of living. Major Japanese firms on average agreed to more than 5% pay hikes during annual spring wage talks in March. The monthly wage data released on Thursday showed real wages fell for a fourth consecutive month, eroded by stubborn inflation that has continued to outpace pay hikes. Looking ahead, Japanese policymakers and analysts are concerned global trade tensions triggered by U.S. tariffs may weaken wage momentum and complicate the BOJ's efforts to normalise monetary policy.
