You are using an older browser version. Please use a supported version for the best MSN experience.

Conditions set for firmer spending: CBA

AAP logoAAP 19/09/2016

There's a good chance of firmer spending in the lead-up to Christmas, according to the Commonwealth Bank.

CBA's Business Sales Indicator, based on the value of credit and debit card transactions processed through its merchant facilities, rose 0.6 per cent in trend terms in August.

CommSec chief economist Criag James said it was the strongest rise in nine months and a large jump after almost flat spending over the last year of so.

Mr James said August's 0.6 per cent jump was also slightly above the 0.5 per cent average of 2015.

"Economy-wide spending has strengthened off the back of improving business and consumer confidence, low unemployment and ongoing low interest rates," Mr James said in a statement.

"The preconditions remain in place for firmer spending in the lead-up to Christmas."

The indicator also showed that sales rose in 13 of 19 industry sectors and in six of eight states and territories in August.

image beaconimage beaconimage beacon