Key insights
- Australian household spending declined 1.1% in April, reversing part of March's increase. Air travel contributed most to the decline. This data point suggests weakening consumer demand in Australia, which could signal broader economic concerns, but its direct impact on US equities is limited.
SYDNEY, May 28 (Reuters) - Australian household spending fell back sharply in April after a petrol-induced spike the previous month, data showed on Thursday, as consumers scaled back on flights and unwound some hoarding of food.
Data from the Australian Bureau of Statistics showed its monthly household spending indicator (MHSI) fell 1.1% in April to A$79.42 billion ($56.59 billion). Analysts had generally looked for a dip of 0.4%, following a 1.6% jump in March.
Air transport was the largest contributor to the decline, as households scaled back travel and airlines cancelled routes, the ABS said.
($1 = 1.4035 Australian dollars)