(Australian Associated Press)
The sharpest monthly rise in spending by businesses in more than seven years has failed to spark a sizeable lift across the wider economy.
Spending by businesses on items including office furniture, computers and software jumped 5.3 per cent in September, in trend terms, according to the latest Commonwealth Bank Business Sales Indicator.
That is the largest monthly increase since January 2008.
But overall sales edged up just 0.3 per cent, slower than an 0.5 per cent rise in both August and July.
“The stellar rise in business spending shows that the federal budget initiatives are proving to be sustainable over a longer period, however this growth hasn’t helped boost the broader economy,” CommSec chief economist Craig James.
Spending on airlines, government services and utilities all fell in September.
“Still, while economy-wide spending growth has slowed, it remains well above the decade average and we’ve also seen strong seasonally adjusted growth,” Mr James said.
“With growth across a number of retail based sectors, businesses should be feeling optimistic leading into the holiday season.”
The monthly sales indicator is based on the value of credit and debit card transactions processed through CBA terminals.