"Small lift" in consumer spending

There was an increase in consumer spending in January, but not as much as one industry expert expected.

There was a "small lift" in Australian consumer spending in January but not as much as was expected, according to one industry expert.

Symon Brewis-Weston, executive general manager of local business banking at the Commonwealth Bank, said he thought there would be more trading than there actually was in the first month of 2010.

The bank – which offers the Commonwealth Gold Card among its range of products – revealed through its business sales indicator that point of sale transactions for debit and credit card purchases increased slightly in January compared to December 2009.

Australians' spend on debit and credit cards increased by 0.1 per cent – in trend terms – which was the worst increase in 14 months.

Mr Brewis-Weston added: "Consumers are still cautious of what the economic future holds following the global financial crisis they continue to keep a tight rein on their purse strings."

This news comes after investment bank UBS predicted that Aussie credit will increase by two per cent in 2010, reported by the Australian Associated Press.

By Mark Hornby