Claims that Aussies aren't spending 'are a gross exaggeration'

Financial expert Michael Pascoe has dismissed claims that Aussies have been refusing to spend any of their money.

Some economists believe that people have put their cash under lock and key since the global economy took a turn for the worse in 2008-09, but Mr Pascoe said this is a "gross exaggeration".

Writing for Yahoo!7 Finance, he suggested that Aussies are still buying goods and the only market that has really suffered is the property sector.

His views are supported by figures recently published by the Australian Bureau of Statistics, which showed the uptake of personal loans increased by 0.1 per cent in July when compared to the previous month, the Australian Associated Press reports.

Mr Pascoe conceded that some businesses in the retail sector have been forced to close, but he insisted this is because they were reliant on overspending Aussies – whereas people are now using their money in a more sustainable way.

"Adjusting to that is proving very painful for some sectors and individuals, but it doesn't mean the overall economy is as bad as some want to make out," he wrote.

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