Economy-wide spending grew at a more sustainable pace in February, a Commonwealth Bank survey shows.
Spending across the Australian economy grew for the 18th consecutive month in February, but at a slower pace than in recent months.
That meant annual economy-wide spending growth eased to a more sustainable pace after strong rises in the past four months, according to the latest Commonwealth Bank Business Sales Indicator (BSI).
The annual growth rate fell to 10.4 per cent, down from a six year high of 10.8 per cent in January.
Despite some areas of weakness, the outlook was generally positive, CommSec chief economist Craig James said.
“Although we are still rebalancing from a mining-led economy to an economy with a more diversified growth profile, there are good reasons to be optimistic as we enter a record 23rd year of uninterrupted growth,” Mr James said.
He said data showed better than expected economic growth in the December quarter, and Australian companies had reported strong profit growth.
The BSI, which tracks spending across the Commonwealth Bank’s point of sales terminals, also showed sales for February rose in seven of the eight states and territories, with Queensland posting the highest growth rate at 1.1 per cent, in trend terms.
Western Australia and Tasmania were close behind, with increases of 0.9 per cent and 0.8 per cent respectively.