Credit card spending down as retailers note shopping decline
The Australian National Retailers Association (ANRA) has described current retail turnover figures as sluggish and has said that spending is likely to be down at Christmas in the wake of interest rate rises.
October saw retail sales rise by 0.3 per cent, after a fall of 0.2 per cent in September and 0.5 per cent growth in August, the ANRA said.
"Retail sales have only grown by 0.6 per cent in the three months to October and worse still, these figures don’t capture the effect of the rate rises," said ANRA chief executive officer Margy Osmond. "These lacklustre figures don’t bode well for the Christmas season, especially with the Reserve Bank playing Scrooge with interest rates."
The ANRA’s warnings will encourage bank customers to compare credit cards in order to find the best deals when it comes to spending this Christmas.
A recent study by the Loan Market Group found that 56 per cent of people are planning on cutting down on how much they spend over the festive season, with such respondents instead planning to provide a boost to their home loans and credit card repayments.
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