Spending spree continues
The latest Commonwealth Bank Business Sales Indicator showed annual spending growth was returning to pre-global financial crisis levels.
In seasonally adjusted terms, described by CBA as being more volatile, spending increased by 0.2 per cent in November, following a 4.1 per cent rise in October.
The report’s author, CommSec chief economist Craig James, said consumers had become more cautious in November, but the outlook remained positive.
“November’s slightly more modest spending growth preceded a dip in consumer confidence in December, with confidence levels easing from a multi-year high,” James said.
“Consumers have been worried by job losses across various industries, higher petrol prices, a weaker Aussie dollar and a more subdued share market.
“Nevertheless, the signs are generally positive.”
Interest rates remain low, lending has increased and a lower Australian dollar was good news for the economy overall, James said.
The BSI tracks debit and credit card transactions at CBA’s point of sales terminals.