Spending slowed to a crawl in January

Economy-wide spending has been slowing for five straight months but cheap petrol and the recent rate cut could provide a boost.

Economy-wide spending has slowed to a crawl but cheap petrol and the recent interest rate cut should hopefully turn that around.

Spending rose just 0.2 per cent in January, marking the slowest spending growth since 2012, figures from the Commonwealth Bank on Monday show.

Sales growth has been slowing for the past five months, but CommSec chief economist Craig James said consumers should start splashing more cash this year.

"With household finances improving following the fall in petrol prices and recent interest rate cut, we can expect many consumers to slowly start opening their wallets and increasing their spending as we progress through 2015," he said.

"Overall, the economy is in a relative stable position, so business owners should start planning for growth in 2015 and take advantage of the expected increase in household disposable income."

The strongest performing sectors last month were hotels and motels and transportation, according to the Business Sales Indicator, which tracks credit and debit card transactions on CBA machines.

Spending rose in the ACT, Tasmania, Western Australia and Queensland, but had fallen in NSW, Victoria, South Australia and the Northern Territory.


Share

2 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world