Fuel relief and fare refunds weigh on last month's figures
Consumer spending fell 1.1% in April following a 2.1% rise in March, according to the latest NAB Consumer Spend Trend report, with lower fuel prices and reduced travel expenditure the primary drivers of the reversal.
"Consumer spending declined 1.1% in April, reflecting lower fuel prices, less stockpiling of food, and continued travel-related refunds and cutbacks," said Sally Auld, chief economist at NAB.
Spending excluding fuel dropped 0.8%, led by a 9.3% fall in travel expenditure. Auld attributed part of that decline to refunds for cancelled flights and the rollout of free public transport in Victoria.
Non-discretionary spending excluding fuel was broadly flat. Food spending eased 1% as the precautionary purchasing seen in March normalised, though this was offset by increases in insurance, utilities, and telecommunications.
Fuel spending fell 6.5% in April but remained 25.4% above February levels. "The decline in the month largely reflects the full effect of the halving of the fuel excise, which reduced fuel costs by 32 cents per litre," Auld said.
NAB consumer spending by category 
Despite the monthly decline, annual spending remains higher, with non-discretionary categories driving growth over the year. Household goods, cafes and restaurants, and other discretionary services each recorded spending increases in April, indicating some underlying resilience in household budgets.
"Relative to February 2026, consumers are spending more on non-discretionary categories," Auld said. "This shift has been driven by higher fuel spending.
"Discretionary spending's share of total spend fell 1.2% compared with February, with the fallback concentrated in spending on hotels, travel and transport. Other discretionary spending on goods and services is little changed as a share of consumers' budgets relative to February. This reflects some underlying resilience in household spending as the Middle East conflict enters its third month."
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