Spending suffers setback in August

The Commonwealth Bank's seasonally-adjusted Business Sales Indicator fell one per cent in August, only the second fall in six months.

Spending is slowing from the surge it got from the small business measures in the May federal budget.

In August, spending fell one per cent, for an annual rate of 5.6 per cent, the Commonwealth Bank's seasonally-adjusted Business Sales Indicator (BSI).

However, CommSec chief economist Craig James is confident spending is still strong despite August's setback.

"Interest rates are low, the job market shows signs of settling and home building is underpinning spending across the economy," he said.