Aussie consumers 'to cut discretionary debit card spending'

Thursday 07 July 2011

Article by Mozo

Nearly half of the respondents to a recent poll revealed that they plan to reduce their discretionary spending in the coming 12 months, which may mean less activity among debit card users.

Aussie consumers 'growing more cautious'

Boston Consulting Group found that Aussies made up the joint third – along with Italians – most risk-averse nation out of the 21 targeted in the survey.

Peter Esho, chief market analyst for Citi Index, told the Sydney Morning Herald that the retail sector is going through a period of "moderation" as consumers tighten their belts.

However, he suggested that people may start to spend more freely on their debit and credit cards next year if the unemployment figures remain at a low level.

The prospects look good in this regard in light of data published by the Australian Bureau of Statistics earlier today (July 7th 2011).

It revealed that the number of Aussies with full-time positions rose by 59,000, the greatest growth seen since 2008.

"It wouldn't surprise me to see a pick-up [in spending] in the next year," Mr Esho concluded.

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