Good News! More Aussies Are Now Buying

Good news for retailers. The latest statistics from the Commonwealth Bank show that consumer spending has hit its highest in the last four years with 10.1 percent.

Last June, spending using debit and credit cards appear to have grown, as well.

These signs are considered positive despite the fact that some department stores are cutting off jobs. The Commonwealth Bank said that business sales index saw a 16 percent growth compared to last year. Even sales from clothing stores grew 11 percent despite facing tough competition versus online shops.

Industry analysts say that rumors of interest rate cuts may be a factor in the spending. According to Craig Hames, stimuli like the government’s household assistance program and rate cuts may have encouraged consumers to open their wallets.

James is chief economist of CommSec.

More good news is in the offing. The Reserve said last Tuesday that the economy appears to have gained more ground than earlier predicted and expected.

The last few years have seen a shift in how Aussies buy their goods. From buying in brick-and-mortar shops, more Aussies are turning to online to shop for different items.

A strong Australian dollar has also made online shopping more enticing. The absence of GST is another major factor in why an increasing number of Aussie consumers are shopping online.

Research, however, needs to be done. According to Margy Osmond, the Australian Bureau of Statistics should provide the current state of both online and offline retailers to give a more accurate picture of what’s happening.

The chief of the Australian National Retailers Association said that currently, there is limited data about Australian online stores.