Australia CBA business spending index drops for fourth consecutive month

Business spending in Australia decelerated for the fourth straight month in June, according to Commonwealth Bank’s Business Sales Indicator (BSI). 

Annual trend sales growth also fell from 4.6% to 4.1% – the slowest growth in 19 years. 

Notably, business spending dipped even though the Reserve Bank of Australia (RBA) cut rates buy 25 basis points to 1.25% in June. The central bank cut rates by additional 25 basis points earlier this month and is now widely believed to be on a wait-and-watch mode.