(24 July 2015 – Australia) The Commonwealth Bank of Australia (CBA)’s latest Business Sales Indicator (BSI) has shown the biggest spending increase in the business services sector in over three years.
Sales in June across the business services sector posted the strongest gains since May 2012; this includes items from office furniture, technology and industrial equipment.
There was a 2 percent lift in June spending, which in turn had a flow-on effect for nationwide spending, which was up 0.7 percent, according to the BSI.
The BSI, which tracks credit and debit card transactions at CBA machines, recorded that annual growth in economy-wide sales rose for the fourth consecutive month in June.
The 7.6 percent rise was the fastest pace in seven months.
It shows firms are continuing to respond well to the government's business-friendly budget and the historic low cash rate, CommSec chief economist Craig James said.
“Despite recent global economic uncertainties such as the Greek debt crisis and China's slowing economy reducing demand for Australian resources, it's encouraging to see businesses and consumers embrace low interest rates and government stimulus, with spending growing at a steady pace,” James said.
During June, there was also a boost in spending in the retail, vehicles, entertainment and manufacturing sectors.
Spending fell in just four of the 19 industry sectors, including airlines, transport, professional services and mail order/telephone order providers.
The BSI covers spending broadly across the economy, including outlay on cars, personal services, utilities and supermarket goods.