Aussies rein in their spending

Mozo

Friday 28 May 2010

Australian shoppers have been tightening their grip on their wallets in the past couple of months as the recent interest rate hikes take their toll.

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The Commonwealth Bank Business Sales Indicator, which tracks credit and debit card transactions, rose 0.2 per cent in April, marking the slowest pace of growth since August 2009.

"Spending is growing but very modestly," the executive general manager of local business banking at Commonwealth Bank, Symon Brewis-Weston, said.

"It’s further evidence that consumers are being impacted by increases in interest rates, preferring to play it safe when it comes to opening their wallets."

The Reserve Bank of Australia’s interest rate has been increased six times since October last year and currently stands at 4.5 per cent.

Earlier this month, figures from Australia’s Bureau of Statistics highlighted that the nation’s retail sales totalled a seasonally adjusted $19.92 billion compared to $19.85 billion.

The amount consumers spent also dropped between January and February.

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