CBA: Debit and credit card transactions up by 0.5%

CBA: Debit and credit card transactions up by 0.5%

Consumer spending has risen again, according to one bank.

The Commonwealth Bank (CBA) has revealed an increase in consumer spending.

According to the financial organisation's Business Sales Indicator (BSI) - which tracks the value of debit and credit card transactions at the CBA's point-of-sale terminals - there was the strongest monthly gain for 18 months after it recorded a rise of 0.5 per cent in trend terms in February.

Matt Comyn, executive general manager of local business banking at the CBA - which provides a number of Aussie credit cards, among other products - said it is the first clear sign that consumers are starting to splash the cash once again, however he did not get carried away by the result.

He added: "Whilst sales figures are firming, however, they are still very much in a fragile state and we are continuing to see consumer sentiment suffering, particularly as a result of ongoing economic uncertainty both at home and abroad."

Among the biggest movers in the BSI were repair services, which recorded a 2.2 per cent spending increase in trend terms.

In addition to this, amusement and entertainment - which consists of cinemas, golf courses and bowling alleys - was up by 1.6 per cent.

But sales in the automotive and vehicles sector were down by 0.1 per cent, while there was an even bigger set back for mail order and telephone order providers due to a 0.9 per cent fall to the figure last month.

Craig James, chief economist of the bank's broking subsidiary CommSec and author of the BSI, noted one of the main factors recorded recently were that the majority of industries had reported growth.

"There was similar encouragement in the February data with only two of the 20 sectors reporting weaker spending in trend terms, down from three in January and four sectors in December," Mr James stated.

However, last month Mr James, writing for Smart Company, pointed out Australians had started to largely concentrate on conserving money - which may have involved setting up a savings account - instead of spending it.

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