Consumers continue conservative measures this summer.

The Commonwealth Bank of Australia (CBA) business sales indicator index in July shows a flat line for consumer spending. The plateau in expenditures still shows a cautious market, but it is a welcome relief for retailers.

The CBA survey showed a six-month long decline in consumer spending before the July flat result.

Commonwealth Bank corporate financial services general manager Symon Brewis-Weston said, “"There appears to be light at the end of the tunnel for retailers.” The flat result, he said, is an improvement in consumer spending that signals a better second half of the year.

However, CommSec chief economist Craig James said that further consumer spending would depend largely interest rates and the job market.

James said, “Stability in interest rate settings over the next few months together with a firm job market are prerequisites for a continued recovery of consumer spending over the remainder of 2010 and into 2011.”

The survey shows spending was strongest in the utilities sector. Trend terms in this sector reached a 1.5 percent rise. Personal service providers, came in second with a 1.2 percent rise in trend terms.

The automobile and vehicles sector are down by 1.5 percent while mail order and telephone order providers are down by 1.3 percent. Retail stores are down by 1.2 percent.