sydneyaustralian consumers are still spending strongly in areas such as transport and education but sectors of the economy sensitive to higher interest rates such as retail and home buying are starting to soften quickly as the policy screws are tightened the commonwealth bank of australias household spending intentions index rose by a modest 09 in june from may taking the index back to an equal record high of 1173 on an annual basis the hsi index is up 119 relative to a year ago still it is important to note that the gains in the hsi index for june were relatively narrowly based said stephen halmarick cbas chief economist big gains were seen for transport which reflects higher gasoline prices he said high spending in areas such as education and household services were also recorded however the more interest ratesensitive sectors of the economy are clearly starting to show the impact of the rbas monetary policy tightening cycle with entertainment home buying and retail all declining on the month mr halmarick added with the rba lifting interest rates by 50 basis points in july and with further increases expected in the months ahead cba would expect to see the interest ratesensitive components of the index weaken further in coming months he added