SYDNEY, June 25 (Reuters) – Australian household spending rebounded in May as travel returned to normal after a war-induced drop in April, data showed on Thursday, suggesting consumer demand was holding up in the face of higher borrowing costs and fuel prices.
Data from the Australian Bureau of Statistics showed its monthly household spending indicator (MHSI) jumped 1.3% in May to A$80.64 billion ($55.59 billion). Analysts had generally looked for a rise of 0.5%, following a steep 1.1% drop in April.
Transport was the largest contributor to gains in May, while households also spent more on clothing and eating out.
($1 = 1.4505 Australian dollars)
(Reporting by Wayne Cole; Editing by Muralikumar Anantharaman)
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