Aussie credit and debit spending 'was flat across July'

Debit and credit card transaction spending across July was flat, according to a Commonwealth Bank survey.

Aussie credit and debit spending was flat across July, according to a recent survey.

The latest Commonwealth Bank Business Sales Indicator (BSI) has revealed that after six months of decline, this has now levelled out.

Although, the BSI - which tracks the value of debit and credit card transactions made through the organisation's point-of-sale terminals - was lower than the same time last year, down to 1.5 per cent, the biggest annual decrease in six years.

Symon Brewis-Weston, executive general manager of corporate financial services at the firm - which offers Commonwealth Bank credit cards - said the results pointed to a change in retail conditions.

He added: "The improvement in spending, the best result recorded since December last year, indicates we are on the cusp of a stronger second half."

But he maintained that consumers are still being cautious and the investment in business is "subdued".

"We're yet to see consumer confidence translate into expenditure but if conditions continue we should be see an upturn toward the end of the year," he stated.

The utilities sector was found to have the biggest spend out of the 20 industries that are monitored, with a 1.6 per cent rise in trend terms over the month of July - and spending at person service providers went up by 1.2 per cent in the same period.

But it was not such positive news for the automobiles and motors industries as they fell by 1.5 per cent in trend terms with mail and telephone order providers narrowly behind with a 1.3 per cent decrease.

However, last month the organisation noted in its BSI survey that transactions on debit and credit cards declined in trend terms by 0.3 per cent during June.

This led Mr Brewis-Weston to note that consumers had moved to the sidelines, where he expected them to stay for the remainder of the year.

By Emma North