Commonwealth debit and credit card transactions up in August

Spending over August increased for the first time since November

, the Commonwealth Bank Business Sales Indicator has revealed.

Commonwealth Bank debit and credit card transactions increased over August, it has been revealed.

The organisation's latest Business Sales Indicator (BSI) - which shows the amount spent at the company's point of sale terminals - has revealed that spending was up by 0.1 per cent.

It is the first positive reading since November last year, but the BSI has still decreased by 2.7 per cent compared to last year - the biggest decline since the records were first collected six years ago.

The stable interest rate, growth in wages and a firm labour market have all combined to help achieve a rise, according to Matt Comyn, executive general manager of local business banking for the firm.

He added: "That said, the runs aren't on the board yet, so it would be premature to signal that the spending slowdown is over."

One of the biggest improvers was the utilities and professional services sector, as there was a further increase in the hotels and motels industry, which has been on the rise for the past seven months.

Craig James, chief economist of the organisation's broking subsidiary CommSec and author of the BSI, noted: "Fewer industries are recording weaker spending growth, suggesting that a broad scale improvement in conditions is underway."

But he observed that lower prices might affect clothing, with higher costs boosting the fortunes of utilities businesses.

In terms of the overall results Mr James pointed out the Reserve Bank of Australia should be taking notice of the figures, adding that the longer the official rate is on hold, the more consumers will be spending.

This news comes after it was revealed by the Commonwealth Bank last month that the spending on debit and credit cards at its point of sale terminals was flat, ending six months of decline.

Commonwealth debit and credit card transactions up in August

By: Sam Gooch

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