Credit card spending starts to stabilise in Oz

By Mozo ·
The drop-off in spending among Australian debit and credit card users appears to be slowing and there is now "light at the end of the tunnel for retailers", new research has found.

It has been revealed that the latest Commonwealth Bank Business Sales Indicator (BSI), which tracks the value of credit and debit card transactions processed through Commonwealth Bank point-of-sale terminals, fell for the 12th straight month in November, but that the 0.1 per cent fall was the smallest decline recorded in 2010.

The BSI also noted that the weakness in spending was concentrated in a small number of industry sectors, with the utilities sector actually dragging down the index in November.

Indeed, if utilities were excluded, the BSI actually lifted by 0.7 per cent in trend terms in the month - the strongest reading for 15 months, Commonwealth said.

Consumers seeking to boost their spending power this December could opt to compare credit cards and other money products in search of the best deals. Among the sectors to see their spending increase last month were "miscellaneous stores", which recorded a rise of 1.1 per cent, while amusement/entertainment and retail stores were both up by 0.9 per cent.

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