The Commonwealth Bank of Australia (CBA) has reported a decline in its Household Spending Insights (HSI) Index by 0.2% for February 2025 with the typically-high spend occasion of Valentine's Day failing to move the dial.

The data highlights a decrease in several spending categories, with recreation spend falling by 1.6%, and Hospitality spend down 1.2%. Additionally, spending on Food and Beverage decreased by 0.7%, Education by 0.6%, and Transport by 0.5% compared to the previous month.

In contrast, half of the 12 HSI spending categories experienced growth in February. Utilities spending rose by 1.9%, Health by 0.7%, and Insurance by 0.7%. These increases, however, were not sufficient to offset the overall decline in the HSI Index.

CBA Senior Economist Belinda Allen said: "The lift we saw in spending at the end of 2024, driven by discount and sales activity, hasn’t carried through to the New Year as constrained consumers dedicate a large portion of their wallet to spending on the essentials."

The spending increase observed towards the end of 2024, attributed to discounts and sales, did not persist into the New Year. This suggests a shift in consumer behaviour, with a focus on essential spending rather than discretionary purchases.