FOLLOW US
Follow us!

We are a proud member of the Financial Services Online network!

Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.

Follow us on social media
Car Loans Australia
Private & Commercial Car Loans for New & Used Vehicles
Car Loans Australia :: News
SHARE

Share this news item!

Cautious Spending Persists Despite Economic Stimuli

Cautious Spending Persists Despite Economic Stimuli

Cautious Spending Persists Despite Economic Stimuli?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Australians continue to exhibit cautious spending behaviours, as evidenced by a modest uptick in expenditure during April, notwithstanding consecutive long weekends and favourable economic conditions.
Recent data from the Australian Bureau of Statistics (ABS) illustrates a 0.1% increase in household spending, following declines and tepid growth in the preceding months.

This slight rise was primarily fueled by increased spending on recreational, cultural, and dining activities, taking advantage of the holiday period. However, expenditures on clothing, footwear, and vehicles experienced notable declines. Highlights from the ABS report reveal that spending in the hospitality sector, including hotels, cafes, and restaurants, surged by 2.2%, while health-related spending rose by 1.6%. In contrast, the clothing and footwear category saw a substantial 3.5% drop.

According to Robert Ewing, head of business statistics at ABS, household spending maintained stability, with service-based spending balanced by a dip in the consumption of goods. Furthermore, year-on-year household consumption shows a 3.7% increase, which is relatively stagnant when adjusted for population growth.

This spending data comes in the wake of a weaker-than-anticipated GDP figure for the March quarter, indicating a per capita economic recession. Despite a 0.2% increase in GDP for the quarter and a 1.3% year-on-year rise, these growth rates failed to avert the recession, with the country's per capita GDP slipping by 0.2%.

The trends in household spending align with separate indicators from the Commonwealth Bank, which reported heightened economic activity in April during the "super holiday" period encompassing Easter and Anzac Day. Nevertheless, Commonwealth Bank senior economist Belinda Allen described the spending surge as "underwhelming" and a mixed result, highlighting persistent consumer caution even amidst interest rate cuts, tax relief, and improving inflation.

Consumer confidence remains subdued, as Allen notes a propensity for Australians to prioritise saving, despite economic incentives. Ongoing global uncertainties may contribute to this cautious financial approach, suggesting a continued conservative mindset among consumers.

Published:Friday, 6th Jun 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Australia's Electric Vehicle Financing Hits $6 Billion Milestone in 2024
Australia's Electric Vehicle Financing Hits $6 Billion Milestone in 2024
09 Nov 2025: Paige Estritori
In 2024, Australia witnessed a remarkable surge in electric and hybrid vehicle financing, with total loans reaching $6.17 billion-a 50% increase from the previous year. This substantial growth underscores a nationwide shift towards more sustainable transportation options. - read more
Westpac Resolves Auto Finance Class Action with $81 Million Settlement
Westpac Resolves Auto Finance Class Action with $81 Million Settlement
01 Nov 2025: Paige Estritori
Australia's Westpac Banking Corporation has reached a settlement of A$130 million (approximately $81.84 million) to resolve a class action lawsuit concerning its auto finance practices. The lawsuit, initiated by law firm Maurice Blackburn in 2020, alleged that between March 1, 2013, and October 31, 2018, Westpac and its subsidiary, St George Finance, permitted car dealers to increase interest rates on car loans to earn higher commissions. - read more
ASIC's Comprehensive Review Targets Motor Vehicle Finance Practices
ASIC's Comprehensive Review Targets Motor Vehicle Finance Practices
24 Oct 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has commenced an in-depth review of the motor vehicle finance sector, aiming to bolster consumer protections, particularly for borrowers in regional and remote areas, including First Nations communities. This initiative underscores ASIC's commitment to ensuring fair and responsible lending practices across Australia. - read more
Bank Australia Shifts Focus to Electric Vehicle Financing
Bank Australia Shifts Focus to Electric Vehicle Financing
24 Oct 2025: Paige Estritori
In a significant move towards environmental sustainability, Bank Australia has ceased offering loans for new petrol, diesel, and hybrid vehicles as of February 2025. This policy change aligns with the bank's commitment to achieving net-zero carbon emissions by 2035. - read more
Australian Used Car Market Faces Cooling Trends Post-2024 Surge
Australian Used Car Market Faces Cooling Trends Post-2024 Surge
24 Oct 2025: Paige Estritori
The Australian used car market, which experienced robust growth throughout most of 2024, has shown signs of slowing down in the final months of the year. This trend suggests a more cautious outlook for 2025, influenced by various economic factors and affordability concerns. - read more
Click for more Finance News


Car Loans Articles

The Role of Loan Terms in Car Buying: Flexibility Explained
The Role of Loan Terms in Car Buying: Flexibility Explained
When it comes to buying a car, understanding the loan terms is just as essential as choosing the right make and model. The terms of a loan can significantly affect your financial journey beyond just the asking price. In a marketplace brimming with attractive deals, comprehending these terms can be your greatest asset, ensuring you drive away with a well-suited financing plan. - read more
Understanding Car Loan Refinancing in Australia: When Is It the Right Move?
Understanding Car Loan Refinancing in Australia: When Is It the Right Move?
Car loan refinancing involves replacing an existing car loan with a new one, usually to lower the interest rate, reduce monthly payments, or modify the loan term. In Australia's fluctuating economic landscape, refinancing can be a strategic financial decision for borrowers looking to adjust their finances to more favorable terms. - read more
Pre-purchase Checklist for Auto Buyers: Ensuring Financial Readiness
Pre-purchase Checklist for Auto Buyers: Ensuring Financial Readiness
Buying a car is an exciting milestone, but it's crucial to approach the process with a clear financial plan in place. Before you get swept away by the shiny showroom models or the thrill of a test drive, understanding the financial implications of purchasing a vehicle can save you from future stress and unwanted debt. Preparing before applying for a car loan is not just recommended; it's a necessary step that directly influences loan terms and your chances of approval. - read more
Navigating Car Finance: How to Choose a Loan That Works for You
Navigating Car Finance: How to Choose a Loan That Works for You
Buying a car is a significant financial decision, and for many, it means exploring the world of car finance. In Australia, the options are plentiful, and understanding them is key to making an informed choice. Car finance can seem daunting, with various loan types, interest rates, and repayment plans to consider. But fear not – a clear understanding of these options can steer you towards a deal that complements your financial circumstances. - read more
The Essential Guide to Securing Affordable Car Finance in Australia
The Essential Guide to Securing Affordable Car Finance in Australia
Finding an affordable car finance option can make the dream of owning a vehicle a tangible reality for many Australians. It’s about understanding the intricacies of the loan market, interest rates, and finding a plan that aligns with your financial prospects and constraints. In a society built on the convenience of mobility, securing a car that meets both your needs and your budget is essential. - read more


Need Help Finding a Loan?
Get a free car loan eligibility assessment and compare offers tailored specifically to your circumstances.

Let's help find your car loan!

Loan Amount:
Postcode:
All quotes are provided free and without obligation by a specialist from our national broker referral panel. See our privacy statement for more details.
All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Capital Market:
A financial market in which long-term debt or equity-backed securities are bought and sold.


This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.
IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.