The Federal Government’s 50 percent Investment Allowance has continued to boost car sales, as motor vehicle sales in October surged by 3.7 percent.
The latest Australian Bureau of Statistics (ABS) figures revealed 81,122 units were sold in October, up from 78,243 in September.
National Australia Bank (NAB) economist David de Garis said the data showed businesses had stepped up to capitalise on the Federal Government’s Investment Allowance which runs out at the end of December.
‘‘These data point to businesses on another buying spree into the end of the calendar year when the 50 percent Investment Allowance runs out,’’ he said.
There is also talk that the data could be the first in a series of positive indicators the RBA will use to make its December interest rate decision.
CommSec economist Savanth Sebastian said the improvement in car sales, along with a rise in confidence will give the central bank confidence the economy is on the mend.
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