Aussies tighten up on debit cards spending

By Mozo ·

Australians with credit and debit cards are spending less using their plastic, recent figures reveal.

Data from the Commonwealth Bank of Australia's business sales indicator (BSI) revealed that last month there was a drop in spending for the 17th consecutive month, reports the Australian Associated Press.

Craig James, chief economist at Commonwealth Securities (CommSec), observed the levels of spending are significantly lower than two years ago.

The weakest area was the retail sector, which recorded a drop of 1.4 per cent in spending during April.

It was one of four sectors to record declining spending last month, the BSI showed.

Figures published by CommSec in April revealed that many retailers reduced their prices over the past months.

Mr James said at the time that the "rampant discounting" was symptomatic of the need for companies in the country to get Aussies to carry on buying goods and services despite the fact that many are tightening their belts.

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