Business spending defies challenges

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Commbank’s latest Business Sales Indicator (BSI) report shows Australian businesses are continuing to respond positively to Government stimulus measures.

According to the report, June sales are maintaining momentum and growing at a solid pace.

“June’s BSI provides a solid indication that now is a promising time for Australian businesses. Sales figures continue to reach record highs with businesses and consumers more confident about the economic outlook,” said Claire Roberts, Executive General Manager, Local Business Banking, Commonwealth Bank.

The Business Services sector, which recorded the strongest sales increase in three years in May, has seen further growth in June with sales rising 2 per cent. The lift in business spending drove economy-wide sales, which rose by 0.7 per cent in June.

“Despite recent global economic uncertainties such as the Greek debt crisis and China’s slowing economy reducing demand for Australian resources, it’s encouraging to see businesses and consumers embrace low interest rates and government stimulus,” said Craig James, Chief Economist at CommSec and author of the BSI report.