Economy-wide spending has slowed to a crawl but cheap petrol and the recent interest rate cut should hopefully turn that around.
Spending rose just 0.2 per cent in January, marking the slowest
spending growth since 2012, figures from the Commonwealth Bank on Monday
show.
Sales growth has been slowing for the past five months, but CommSec
chief economist Craig James said consumers should start splashing more
cash this year.
“With household finances improving following the fall in petrol
prices and recent interest rate cut, we can expect many consumers to
slowly start opening their wallets and increasing their spending as we
progress through 2015,” he said.
“Overall, the economy is in a relative stable position, so business
owners should start planning for growth in 2015 and take advantage of
the expected increase in household disposable income.”
The strongest performing sectors last month were hotels and motels
and transportation, according to the Business Sales Indicator, which
tracks credit and debit card transactions on CBA machines.
Spending rose in the ACT, Tasmania, Western Australia and Queensland,
but had fallen in NSW, Victoria, South Australia and the Northern
Territory.
This news story is reprinted from www.businessspectator.com.au
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