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Spending picks up in April: CBA

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Economy-wide spending picked up in April helped by lower interest rates and surging house prices.

The Commonwealth Bank's Business Sales Indicator (BSI), which tracks credit and debit card transactions at CBA machines, rose a seasonally adjusted 1.4 per cent in April, after increasing 1.6 per cent in March.

The annual growth rate of spending was 7.4 per cent in April, stable from March's year-on-year reading.

Spending in April picked up most on amusement and entertainment (up 2.4 per cent) and professional services and membership organisations (up 1.3 per cent), according to Wednesday's BSI.

Big falls included spending on airlines, which fell one per cent, and vehicle sales, down 1.1 per cent.

CommSec chief economist Craig James said economy-wide spending continued to record a "healthy lift".

"Household balance sheets have received a boost from a combination of low interest rates and rising house prices," Mr James said.

"The reaction to the federal budget has been broadly positive with consumer confidence, lifting to a six month high in the past week."

The BSI covers spending broadly across the economy, including outlay on cars, personal services and airlines.

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CBA business sales indicator shows economy-wide spending rose on lower interest rates, house prices.

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