Economic recovery at risk as spending rebound slows

Australians pulling back from restaurant and holiday splurges has slowed the recovery in consumer spending.

Household spending grew 0.1 per cent in August, the Australian Bureau of Statistics revealed on Thursday, below consensus estimates of a 0.3 per cent rise.

The result is a speed bump in a five per cent increase in consumer spending in the past year, driven by falling interest rates, slowing inflation and rising real wages.

The incremental improvement comes after a 0.4 per cent rise in July and 0.5 per cent in June.

"The small rise in August was the fourth increase in a row, and spending has risen in 10 of the last 12 months," said Lauren Binns, ABS head of business statistics.

Spending on recreation and culture fell 0.9 per cent, while hotels, cafes and restaurant expenditure gr