The Commonwealth Bank’s Business Survey Indicator (BSI), which measures the value of credit and debit card transactions processed through Commonwealth Bank merchant facilities, was released this morning showing another solid rise in the month of June.
“The BSI lifted by 0.7 per cent in June after rising 0.8 per cent in March, April and May. Annual growth of spending lifted for the fourth month to 7.6 per cent, above the decade-average of 5.3 per cent” the bank said.
Commenting on the survey, and the data which underlies the transactions, CommSec chief economist Craig James said:
The latest data on economy-wide spending continues to encourage. Businesses are spending again in response to the stimulus measures contained in the federal budget. And consumers are spending, especially on cars, hotels and entertainment. Economy-wide spending is growing faster than “normal”, and if this continues, it will support the Reserve Bank’s view that unemployment could ease in coming months.
He added that with the Aussie dollar at 6 year lows “if businesses and consumers are spending, then the Reserve Bank doesn’t need to do more in stimulating the economy.”