IT sales surge with end of financial year sales

Spending up as recession fears fade.

GfK TEMAX's second quarter report on spending habits has revealed that it was a bumper quarter for the IT sector.

The report found the IT sector, achieved a year on year value growth of 32.3 percent.

While small domestic appliances rose 9.3 percent and telco sales grew 7.4 percent continued to perform well.

Growth in spend on photographic products, consumer electronics and major domestic appliances showed a modest growth of 2-3 percent.

GfK said the June growth rate is the "highest recorded rate for any individual month so far this year".

Other key growth factors were the end of financial year sales, the education tax refund and an unexpectedly early cold-snap.

The report said the news in early June that Australia had officially avoided a recession in quarter one as well as the release of fairly steady unemployment statistics, was bound to have had an impact on the consumer spending behaviour witnessed in June.