Aussies are starting to spend more money, study shows
Many Aussies have had no choice but to adopt a much more cautious approach to spending in the past few years, but there are signs that we are starting to loosen the grip on our wallets and purses a little bit.
The latest Commonwealth Bank Business Sales Indicator showed that retail activity was up by 1.9 per cent in May in seasonally-adjusted terms.
This means that spending levels are 5.9 per cent higher than last year and it is clear that we are happier to use our debit cards than we have been for a while.
Bosses at the bank also confirmed that this is the third time in four months that spending levels have gone up.
It is no coincidence that people have started to splash the cash a little more freely at the same time that interest rates came down sharply.
The Reserve Bank of Australia slashed the official rate by 50 points in May and then sanctioned a further 0.25 per cent cut this month.
This means people with mortgages or personal loans will be making long-term savings – giving them more disposable income to spend elsewhere.
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