Spending on the rise


moneySpending has risen across the Australian economy for 16 consecutive months and a lower Australian dollar, along with improving consumer sentiment, should provide a further boost this year.

Economywide spending rose 0.9 per cent in December according to CBA’s Business Sales Indicator, and was up 9.8 per cent over the year.

CBA local business banking general manager Lex Thornton said the BSI, which tracks spending across the bank’s point of sales terminals, had shown growth for sixteen months straight.

“These latest figures build on what was a strong year across most states and industries,” he said.

CommSec economist Savanth Sebastian said the fall in the Australian dollar should help lift spending with local businesses in 2014.

“The lower Australian dollar should also provide a boost to exports in coming months and help to alleviate the risks surrounding the rebalancing of the economy,” he said.

“Dually, improving prospects for a broader global economic recovery are in part supporting a more positive outlook for consumer sentiment.”

The BSI showed a 1.1 per cent increase in retail spending during December and a 3.4 per cent rise in spending on transport.

Meanwhile spending on hotels and motels rose 1.8 per cent in the month, while spending levels in mail and telephone orders fell 2.1 per cent.


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