(25 July 2012 – Australia) Economy-wide spending posted solid growth in June, lifting by 2.5 percent in seasonally adjusted terms, according to the latest Commonwealth Bank Business Sales Indicator (BSI).CBA said in seasonally adjusted terms, spending is now also up 10.1 percent on a year ago – the biggest annual gain in over four years.
The June BSI recorded the sixth increase in sales in the past eight months, and follows on from a 2.1 percent increase in seasonally adjusted terms in May.
According to Matt Comyn, Executive General Manager, Local Business Banking, Commonwealth Bank, these results should be welcomed by Aussie businesses.
“We know the patchy nature of the economy means businesses are continuing to be conservative. However, what these results tell us is that consumers are taking tentative steps in the right direction. Small surges in consumer sentiment can result in spending increases, which is what we have seen throughout the year, and again in the June results.
“While these improvements are gaining traction, consumer confidence still remains fragile. This, coupled with a competitive landscape, means businesses should remain focused on moving forward,” said Comyn.
The BSI is a key measure of economy-wide spending, tracking the value of credit and debit card transactions processed through Commonwealth Bank point-of-sale terminals, a sample of approximately 30 percent of the Australian market.