Consumer spending fell in June

ECONOMISTS say they are disappointed by the latest consumer spending figures, with sales dropping over July.

Figures from the Business Sales Indicator show after recent gains in May and June, spending dropped by 5.4 per cent last month in seasonally adjusted terms.

CommSec chief economist, Craig James, says recent government stimulus only went so far.

"Over May and June we had some pretty good increases in spending, 2 per cent in May and 3 per cent in June in seasonally adjusted terms," he said.

"But we've gone backwards in July, I think probably some of the temporary stimulus over May and June, some of the Government handouts and the interest rate cuts, certainly has proved very temporary."

Read more at ABC news online.


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