Consumer spending measurement for the three months to May 2026 shows signs of Australians pulling back some discretionary expenditure as economic conditions and global events take their toll. With multiple interest rate hikes in 2026, spiking fuel prices and declining consumer sentiment, spend per capita across a number of discretionary spending categories declined over the last 3 months.
Ride-sharing absorbs price hikes
Shared transport (Uber, Didi, and comparable services) recorded the strongest spend per capita growth at 30% when compared to the same period in 2025. The catalyst was basket size alone: prices rose, but usage and frequency held steady. Consumers are paying more per trip without cutting back on the service itself.
Lotteries up, discretionary categories down
Lotteries grew 12 to 13% over the quarter, consistent with its historical tendency to outperform during periods of economic pressure. Meanwhile, spend in Cafes and Bakeries, direct QSR purchases, and Home Improvement (excluding trade and B2B) all declined materially as the frequency of purchase slowly dropped. Australians appear to be pulling back on everyday treats and non-essential home spending.
Streaming costs quietly creep up
Subscription TV spend increased 4% year-on-year, driven by price increases from major platforms. So far, consumers are absorbing price increases rather than cancelling, but the category is not immune to further pressure if conditions deteriorate.
A notable shift in Petrol and Convenience
After 38 consecutive months without growth in spend per capita (attributable to declining tobacco sales), the category recorded a 2% lift in the three months to May 2026. A 13% jump in average basket size was the primary contributor, reflecting higher fuel prices flowing through to the pump.
The broader picture: Australians are absorbing price increases in high-utility categories (transport, streaming, fuel) while actively cutting back where spending feels more optional. We'll continue to track consumer spending and how it changes as economic conditions and global tensions continue.
For more information on how Fonto tracks changes consumer spending, reach out to the team at insights@fonto.com.au
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