Third straight decline still a strong reading
(2 May 2011 – Australia) The Commonwealth Bank (CBA) Business Sales Indicator (BSI) eased by 0.1 percent in trend terms in March, following similar readings in January and February according to the statement released last month.
CBA believes the Queensland floods could be distorting the analysis however, with seasonally adjusted terms showing the Queensland business sales index slumped by 5.5 percent in March, after lifting by 3.6 percent in February.
The trend BSI for February was revised to also show a 0.1 percent decline rather than a 0.5 percent gain.
Despite the modest decline in overall trend spending, only five of the 20 industry sectors recorded weaker sales in March; a similar result to February.
The bank said that while sales were still easing, the small declines in the past three months were actually the strongest readings recorded since December 2009.
While aggregate spending was still easing modestly, the majority of industry sectors were still recording spending growth in trend terms. The biggest industry category – retail stores – fell by 0.8 percent in March, the third straight decline.
The trend BSI for February was revised to also show a 0.1 percent decline rather than a 0.5 percent gain.
Despite the modest decline in overall trend spending, only five of the 20 industry sectors recorded weaker sales in March; a similar result to February.
The bank said that while sales were still easing, the small declines in the past three months were actually the strongest readings recorded since December 2009.
While aggregate spending was still easing modestly, the majority of industry sectors were still recording spending growth in trend terms. The biggest industry category – retail stores – fell by 0.8 percent in March, the third straight decline.
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