Australia's Woolworths figures suggest no rise in credit card spending

Retail figures in Australia are not living up to expectations.

Credit card users may still be holding back from using their plastic when shopping in Australia, after the country's chain of Woolworths stores predicted a subdued year.

In its latest financial release, the retailer said its shares have fallen by five per cent and it recorded a 2.6 per cent rise in the 2012 financial year to date – below many experts' expectations.

The store went on to forecast that profit will be somewhere between two and six per cent over the remainder of the year.

This month has witnessed a two-year low in consumer confidence and declining sales figures show no signs of a turnaround.

"It's a low growth company at the moment and it's likely to be that way for the next two or three years," said Don Williams, chief investment officer at Platypus Asset Management.

A drop in credit card use was implied by the Commonwealth Bank recently, when it revealed its business sales indicator fell by 0.3 per cent in July.

By Kate Guthrie