Debit and credit card spend 'up by 0.5%'

Debit and credit card spend increased by 0.5 per cent in January, seasonally adjusted figures have revealed.

According
to the Commonwealth Bank (CBA) Business Sales Indicator (BSI) - which
tracks the value of debit and Aussie credit card spent at the financial
organisation's point of sale terminals - there was a rise last month
after a similar gain in December.

But in trend terms, the BSI figure eased in January.

However,
Matt Comyn, executive general manager of local business banking at the
CBA, said the increase is encouraging for retailers as it is one of only
three surges in the past 11 months.

What's more, consumer
confidence was already weak before the floods over the festive and new
year periods hit - and many small businesses were negatively affected by
the natural disaster.

Mr Comyn added: "These positive signs are
pleasing, particularly as they take into account a number of economic
setbacks that one would have expected to drive down sales.

"Therefore,
to see the biggest industry category of retail stores recording the
largest gain across sectors and its biggest increase in 17 months is
definitely good news."

Retail stores managed an increase of 1.3 per cent, while there were also gains elsewhere.

Contracted
services advanced by 1.2 per cent in trend terms in the month, plus the
increase stood at 6.2 per cent for the year overall.

In addition
to this, there was also good news for repair services and service
providers, which were both up by 1.1 per cent - and the amusement and
entertainment sector recorded a growth of 0.5 per cent in January.

This
comes after last month's CBI revealed the best reading for more than a
year in terms of the value of debit and credit cards after a 0.5 per
cent rise in December - its fourth consecutive increase.
Meanwhile, there are mixed indications for the interest rate, it has
been said. The interest rate outlook is a mixed one following the
release of construction work figures and the labour price index.

This
is the suggestion by Nomura Australia chief economist Stephen Roberts,
who pointed out there are varied indications in terms of the work done,
the Australian Associated Press reports.

In addition to this, he
stated strain is being put on both the base rate and inflation, noting:
"The labour price index was on the high side of expectations. That does
leave a bit of pressure on the wages side."

What's more, his
comments come after the Australian Bureau of Statistics announced hourly
rates of pay had gone up by a seasonally adjusted sum of one per cent
during the December quarter, a 3.9 per cent increase from the same time
one year earlier.

But homeowners will be hoping the Reserve Bank
of Australia does not up the interest rate soon after its last increase
in November - of 0.25 per cent - prompted the Commonwealth Bank to raise
its home loans and savings account rates.


to see it
http://www.articlesbase.com/credit-articles/debit-and-credit-card-spend-up-by-05-4376657.html