Boost in consumer spending as buyers tread warily back

A leading industry group says consumers may be showing ‘tentative signs’ of spending, despite figures showing services-sector activity sank further into negative territory last month.

The embattled sector has now contracted for 10 of the past 12 months, according to the Performance of Services Index compiled by the Australian Industry Group (AIG) and the Commonwealth Bank.

"The improvements in activity in consumer-related sectors are a tentative sign that businesses may be expecting consumers to shrug off some of the caution that has been evident over much of the past year," AIG chief Heather Ridout said.

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