CommBank releases Household Spending Insights Index

The CommBank Household Spending Insights (HSI) Index remained unchanged at 153.4 in January 2025, as Australian consumers took a break from spending following a surge during the Black Friday, Cyber Monday, and Boxing Day sales.

The CommBank HSI Index tracks spending patterns based on de-identified payments data from around 7 million CBA customers, representing roughly 30 per cent of Australian consumer transactions.

Spending rose in six of the 12 tracked categories, with the most significant increases seen in:

• Motor vehicles: +1.5 per cent

• Insurance: +1.2 per cent

• Health: +1.0 per cent

CBA Senior Economist Belinda Allen noted the flat result was expected after strong spending in late 2024. Allen expects the Reserve Bank of Australia (RBA) to cut interest rates at its next meeting, with a forecast of 100 basis points of easing throughout 2025, which could boost consumer activity.

Mortgage holders saw a larger annual increase in spending (+3.0 per cent) compared to outright homeowners (+2.8 per cent) and renters (+2.0 per cent).