Australian CBA business spending index - weakest since Feb 2017
Commonwealth Bank's measure of economy-wide spending, report for June 2019 out.
Business Sales Indicator (BSI) "broadly flat in trend terms"
- Spending growth has decelerated for four consecutive months
- annual trend sales growth fell from 4.6 per cent to 4.1 per cent
- slowest rate in 19 months
- below its long-term average growth pace
This is not a closely watched indicator.
The decline, not just this month, fits with concerns the RBA has on the economy. They are, for now, in monitoring mode after cutting the cash rate this month and last. Looking at the developments in the economy its hard to see too much positive input for the AUD.
The Commonwealth Bank BSI is obtained by tracking the value of credit and debit card transactions processed through Commonwealth Bank merchant facilities.
- covers spending broadly across the economy
- Not just retail sales
- includes spending on autos, personal services and airlines