Australian economy-wide spending continued to grow in June, bringing annual growth to a five-and-a- half year high, according to the latest Commonwealth Bank Business Sales Indicator (BSI) released Friday.

The figures showed spending lifted 1 percent in trend terms in June with annual growth standing at 8.7 percent.

CommSec chief economist Craig James said the data showed consumers were spending more on services rather than goods like food and clothes.

"The Reserve Bank will be comforted by the latest data which reveals that consumers are responding to lower interest rates by continuing to spend, but spending more on services and goods from abroad rather than at Australian brick-and-mortar stores," he said.

"What is promising for businesses is that we are now seeing consistent consumer spending patterns form, independent of external spending incentives or overtly positive economic news." Endi

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