Spend-up on back of Budget
AUSTRALIAN businesses were strong spenders in May, suggesting Federal Budget stimulus measures could already be having an impact.
The latest Commonwealth Bank Business Sales Indicator, released this morning, reveals the business services sector – which includes retailers of office furniture and computer equipment – recorded spending growth of 1.9 per cent in trend terms for the month.
Federal Treasurer Joe Hockey announced in the May Federal Budget that businesses with an annual turnover of less than $2 million could immediately deduct an asset worth up to $20,000.
Craig James, CommSec chief economist and author of the BSI report, said growth had been recorded in May across 17 of the 19 sectors featured in the research.
“The growth (suggests) businesses are responding to the stimulus measures in the Budget,” he said. SA had the highest retail sales in May, up 1.3 per cent in trend terms. Other states and territories recorded sales increases.