Aussies 'increasingly wary of overspending'

By Mozo ·

Aussies have become increasingly wary of spending too much money thanks to a number of factors.

Economist at AMP Capital Investors Shane Oliver believes that concerns over potential redundancies and the rise in home loan rates have led to people tightening their purse strings.

He told the Herald Sun that retailers can expect less frequent credit card activity in the near future.

"Expect recent news of rising unemployment, soft economic growth and rises in bank mortgage rates to have resulted in a fall-back in consumer sentiment after several months of solid gains," he was quoted as saying.

Official government statistics recently showed that 15,000 jobs were lost across the nation in February 2012 alone, which has resulted in a more cautious attitude towards spending.

Chief economist at HSBC Paul Bloxham believes that the rise in unemployment could pave the way for further interest rate cuts from the Reserve Bank of Australia in the next few months.

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