The Reserve Bank's decision to hold off plans for an upward rate adjustment in the past few months had impact well on Australia's consumers, who are now more spend-thrifts and conscious on what to spend on.

A study made by Sydney-based Deloitte Access Economics showed that it is not the lack of resources that pulled down consumer and retail spending in the recent months, Australian consumers just got wiser and more conscious on where and why to spend at all.

The Deloitte Access Economics study said that Australian consumers spent less not due to lack of income growth, but because people became more cautious and saved more for assets that can create value in the long term such as pieces of property.

Home loan borrowers

The rising value of the dollar and the increase in the prices of goods have prompted Australians to spend wisely and only on needed items, the Deloitte study further said. Australian consumers have learned to prioritise and less impulsive in their buying method.

This Australian consumer trait is also indicative in the increase of home loan borrow that went up in April by 4.8 percent, reversing three consecutive months of decline, as lower prices lured some buyers back into the market.

The gain is the biggest since March 2009 and the the bureau also revised March's decline to 1.1 per cent from an earlier reported 1.5 percent drop.

The value of investment lending dropped by 1.6 per ent in April to $6.04 billion, while the value of owner-occupied loans grew 6.3 percent in the month to $13.8 billion, the ABS said.

Loans totalled 47,347, while in value terms, they rose 3.8 percent to $18.5 billion.

The strength of the housing sector is being watched closely - and not just by those considering a purchase or sale of property.

ICAP economist Adam Carr said in a related Sydney Morning Herald report: "Today is a good sign that momentum will rebuild going forward," he said. "Interest rates are still relatively low."

The Reserve Bank yesterday chose to keep its key cash rate unchanged for a sixth consecutive meeting, the longest pause since mid-2007.

"My expectation is that we will return to the trend of the second half of 2010 as the momentum picks up," Mr Carr said in SMH. "Everything is supportive of the housing market at the moment with the key restraining factor being affordability."