Spending growth has run out of puff and the looming election may further dampen business investment.
Spending grew by 0.2 per cent in April, seasonally adjusted, according to Commonwealth Bank's business sales indicator (BSI), which draws on data from its own point-of-sale technology.
Spending growth per month has slowed from an average of 0.5 per cent in late 2015 to 0.2 per cent in the past five months.
CommSec chief economist Craig James said there are a mix of factors likely to influence spending in the months ahead.
"The recent interest rate reduction suggests that the BSI will lift further in coming months," he said.
"Though the federal election may result in businesses checking their spending plans."
CBA's report showed spending slowed in five of 19 industry sectors, including vehicles, retail and government services.
But spending in hotels and motels rose for the 40th consecutive month, and miscellaneous store sales lifted for the 57th month.
Only sales in Victoria and the Northern Territory slumped in April, while NSW was the strongest state, followed by South Australia.
The BSI measures economy wide spending, tracking credit and debit card transactions processed through Commonwealth Bank sales terminals.
Share
