November BSI shows increased spending
(22 December 2011 — Australia) Consumers have continued to increase their appetite for spending, once again opening their wallets in November, according to the latest Commonwealth Bank (CBA) Business Sales Indicator (BSI).
The BSI rose by 0.3 percent in November, following similar gains in both September and October.
According to CBA executive general manager, business banking said that the overall consumer attitude remained cautious however the sales continued to be a good news story as retailers prepared for the Christmas sales period.
"The fact that consumers are more willing to spend now than they were earlier this year is a positive sign, particularly for this time of year," said Comyn.
"The November figures factor in the first rate reduction witnessed this year, so it’s possible that the latest announcement from the Reserve Bank this month may act as a trigger to encourage additional spending. However, the reasons behind the decision, namely the crisis in Europe, will also have an impact on the consumer mood."
"It has been a tough year for a large number of Australian businesses. As a result, many will be looking to capitalise on what they hope will be a busier trading period as shoppers visit stores to make Christmas-related purchases.
"The December figures – to be released in January 2012 – will be important in understanding how willing consumers were to spend this festive season or if their conservative nature continued to be entrenched, in turn constraining more defined growth in business sales,' Comyn said.
According to CBA executive general manager, business banking said that the overall consumer attitude remained cautious however the sales continued to be a good news story as retailers prepared for the Christmas sales period.
"The fact that consumers are more willing to spend now than they were earlier this year is a positive sign, particularly for this time of year," said Comyn.
"The November figures factor in the first rate reduction witnessed this year, so it’s possible that the latest announcement from the Reserve Bank this month may act as a trigger to encourage additional spending. However, the reasons behind the decision, namely the crisis in Europe, will also have an impact on the consumer mood."
"It has been a tough year for a large number of Australian businesses. As a result, many will be looking to capitalise on what they hope will be a busier trading period as shoppers visit stores to make Christmas-related purchases.
"The December figures – to be released in January 2012 – will be important in understanding how willing consumers were to spend this festive season or if their conservative nature continued to be entrenched, in turn constraining more defined growth in business sales,' Comyn said.
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