CBA business sales indicator records improvement
(23 September 2011 – Australia) The latest Commonwealth Bank Business Sales Indicator (BSI) showed that business sales improved in August, recording the best result for four months.
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. The BSI fell by 0.1 percent in August, up from a 0.3 percent decline in July and 0.5 percent decline in June.
CBA Local Business Banking ECM Matt Comyn said the latest figures were a welcome result in the midst of broader market uncertainty.
"Businesses across Australia are continuing to face testing times and whilst there isn’t any true strength in the numbers yet, it’s a start," said Mr Comyn.
"We are seeing more stability in the market in terms of the outlook for interest rates which is helpful, however we are still living in volatile times and there continue to be a range of other factors preying on the consumer’s mind."
"With both domestic and global markets continuing to behave erratically, longer-term stability will be needed to coax more money out of the consumer purse."
Craig James, Chief Economist of the Bank’s broking subsidiary CommSec and author of the BSI, said the August numbers were definitely encouraging in the current market.
"In seasonally adjusted terms the BSI actually posted a rise of 0.6% in August, the first positive reading since June and the strongest increase in spending in six months", said Mr James.
"There may be brighter times ahead for Australian businesses however the picture across the economy remains mixed. The Retail Stores sector looks set to continue its struggle yet there is positive news in that we are witnessing an ongoing shift in consumer behaviour with the Amusement and Entertainment sector posting consistent growth in sales."
CBA Local Business Banking ECM Matt Comyn said the latest figures were a welcome result in the midst of broader market uncertainty.
"Businesses across Australia are continuing to face testing times and whilst there isn’t any true strength in the numbers yet, it’s a start," said Mr Comyn.
"We are seeing more stability in the market in terms of the outlook for interest rates which is helpful, however we are still living in volatile times and there continue to be a range of other factors preying on the consumer’s mind."
"With both domestic and global markets continuing to behave erratically, longer-term stability will be needed to coax more money out of the consumer purse."
Craig James, Chief Economist of the Bank’s broking subsidiary CommSec and author of the BSI, said the August numbers were definitely encouraging in the current market.
"In seasonally adjusted terms the BSI actually posted a rise of 0.6% in August, the first positive reading since June and the strongest increase in spending in six months", said Mr James.
"There may be brighter times ahead for Australian businesses however the picture across the economy remains mixed. The Retail Stores sector looks set to continue its struggle yet there is positive news in that we are witnessing an ongoing shift in consumer behaviour with the Amusement and Entertainment sector posting consistent growth in sales."
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