Aussie Credit Spending Is Growing "very Modestly"

The latest Commonwealth Bank BSI shows that the amount Australians spend is still increasing.

The amount Australians are spending on their Aussie credit and debit cards is increasing, according to one report.

This comes from the latest Commonwealth Bank Business Sales Indicator (BSI) - which tracks the amount of debit and credit card transactions put through the organisation's point-of-sale terminals - which stated that sales were up over April.

But executive general manager of local business banking at the organisation Symon Brewis-Weston noted that this rate is increasing "very modestly".

The dealings rose by 0.2 per cent, in trend terms, over April - a 4.6 per cent growth in the month, which was the slowest for eight months.

Mr Brewis-Weston said the slow-moving retail figures could be down to the recent interest rate increases affecting consumers and businesses, with more people choosing the safe option when they open their wallets instead of spending a lot.

He added: "It's interesting to note the trends appearing through the seasonally adjusted figures, which show a zigzag sequence that suggests a change to normal pattern of spending.

"It appears that businesses are being prompted by the conservativeness of consumers to hold sales at a different time of the year than usual. So one month spending is up, but once the discounts end spending eases the next month."

The mail and telephone order industries were found to be the strongest in the BSI with an increase of 1.1 per cent, followed by the amusement and entertainment business up by 0.8 per cent.

Craig James, chief economist of the bank's broking subsidiary CommSec and author of the BSI, noted the former was up due to people responding well to discounts.

This news comes after the bank's last BSI, which showed that retail sales had increased strongly and were up 0.7 per cent over March - the biggest growth rate in eight months.

by: Sam Gooch

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