After rise in October transactions.
Low interest rates and rising consumer confidence are set to lift economy-wide spending in the lead up to Christmas, according to Commonwealth Bank.
CBA’s Business Sales Indicator, which is based on the value of credit and debit card transactions processed through its merchant facilities, rose 0.4% in trend terms in October, matching the gain in September. It was the biggest back-to-back increase in spending in nine months.
CommSec chief economist Criag James said improved spending came despite the uncertainty in the lead up to the November 8 US presidential election.
“The latest data paints a positive picture for Australian businesses as we move into the Christmas spending period, showing continued recovery in spending following uncertainty around Brexit and the Federal and US elections,” James said.
“Spending slowed from December 2015 through to April 2016. But in an environment of improved certainty, low interest rates and consumer confidence, we’re now seeing spending expand at faster than the average monthly rate over the past decade.”