Australian households are continuing to keep a close eye on their spending, with new data showing only a slight increase in consumption in April — despite interest rate relief and slowing inflation.

Figures from the Australian Bureau of Statistics show household spending rose by 0.1 per cent in April, after a 0.1 per cent fall the previous month.

ABS head of business statistics, Robert Ewing, said the small rise was driven by increased spending on services like recreation, health and dining out — but that was offset by weaker spending on goods, particularly clothing and cars.

“Household spending remained steady in April, with a rise in spending on services being partly offset by a fall in goods spending,” Mr Ewing said.

Year-on-year, household consumption is up 3.7 per cent — a modest result given Australia’s rapidly growing population. Economists say real per capita spending has effectively flatlined.

That’s significant because consumer spending makes up more than half of the country’s economic output — and stagnant household consumption was a key reason behind Australia’s sluggish 0.2 per cent economic growth in the March quarter.

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From July, the ABS will stop publishing its long-running retail trade report, instead relying on the more comprehensive Monthly Household Spending Indicator, which captures about 68 per cent of household consumption.