<?xml version="1.0" encoding="ISO-8859-1"?> <docID>328952</docID> <postdate>2024-09-12 10:24:26</postdate> <headline>Father’s Day spree boosts August spend</headline> <body><p><img class="size-full wp-image-328953" src="https://citynews.com.au/wp-content/uploads/2024/09/20200413001463254771-original-resized.jpg" alt="" width="900" height="600" /></p> <caption>Household goods spending jumped in August as people splashed out on tools for Father's Day gifts. (Dave Hunt/AAP PHOTOS)</caption> <p><span class="kicker-line">By <strong>Poppy Johnston</strong> in Canberra</span></p> <p><strong>Australians managed to find room in the family budget to shower dads with gifts on Father's Day despite ongoing financial pressures.</strong></p> <p>More money was funnelled into hardware stores and men's clothing outlets last month, pushing household goods spending a solid 4.4 per cent higher in the month of August.</p> <p>Spending on presents as well as meals and drinks out nudged Commonwealth Bank's household spending insights index up 1.8 per cent over the month.</p> <p>CBA chief economist Stephen Halmarick chalked up the spending boost in August to the early timing of Father's Day but said households and the broader economy were still under pressure.</p> <p>For the year, spending was only 3.7 per cent higher, which Mr Halmarick said reflected a still relatively weak consumer.</p> <p>The bank expects the Reserve Bank to cut interest rates later this year, a departure from the remaining three big banks tipping a 2025 start.</p> <p>CBA expects inflation to moderate faster and the labour market to loosen more than the central bank thinks, hence the earlier start to cuts.</p> <p>"However, there is a possibility of delays pushing this into early 2025," Mr Halmarick said.</p> <p>Thursday's spending indicator also captured the early impacts of government power bill rebates, with utilities spending down 0.3 per cent.</p> <p>"This, coupled with increased education spend, impacted spending across home ownership categories as we saw a jump in spending by renters likely due to university fees, while outright owners benefited from reduced spend on utilities as this is typically a larger share of their wallet," Mr Halmarick said.</p> </body>