Sharechat Logo

NZ electronic cards spending climbs in July as govt's families package kicks in

Friday 10th August 2018

Text too small?

New Zealand retail spending on electronic cards rose in July as the government's suite of measures aimed at boosting household incomes came into effect. 

Seasonally adjusted total retail spending on credit and debit cards increased 0.7 percent in July after lifting 0.8 percent in June, Statistics New Zealand said. Core retail spending, which excludes vehicle-related industries, rose 0.3 percent in July, after lifting 0.6 percent in June. 

“With a third consecutive monthly rise of around 0.7 percent, we have seen steady growth in retail card spending after the dip in April,” acting retail manager Kathy Hicks said. “The latest monthly rise mainly reflects spending on the household essentials such as fuel and groceries.” 

Westpac Banking Corp senior economist Satish Ranchhod said the lift in spending was supported the government's family package, which boosted the disposable income of many families. The government also lifted the minimum wage on April 1. 

"While we expect spending to be stronger than in the first half of the year, households’ spending appetites will continue to be challenged by the ongoing softness in the housing market," he said. 

Yesterday the Reserve Bank kept the official cash rate at 1.75 percent and indicated it would stay lower for longer as economic growth has been weaker than expected. While the RBNZ said household spending is currently "solid", it noted the housing market is softening and that "is expected to weigh on household spending" over the forecast period.  

Today's data show card spending rose in four of the six retail industries in July. Consumables spending, which covers grocery and liquor retailing, rose 0.6 percent in July, while spending on fuel advanced 2.1 percent. Spending on apparel such as clothing, footwear and accessories slipped 1.8 percent.

Today's figures show actual total retail spending using electronic cards increased 4.5 percent in July percent to $5.17 billion compared with the same month a year earlier.

Card-holders across all industries made 144 million transactions in the month, up from 140 million in June. The average value of $49 was unchanged on the month and the year.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar trades in tight range as ECB confirms end to quantitative easing
MARKET CLOSE: NZ shares rise as optimism over US-China trade deal lingers; Fletcher gains
NZD under pressure against Aussie as investors cheered by easing of trade jitters
PFI properties’ valuation rises 5.5% to $1.32 billion
Broader definition of workplace harm in new govt health & safety strategy
MBIE officials grilled on terms of Westland Milk loan
Trade Me suitor Hellman & Friedman drops out
Hydrogen not a short-term option for Huntly - Genesis
Kiwibank says customers have a dwindling need of physical branches
Buying off the plans driving down KiwiBuild cost to govt: HYEFU

IRG See IRG research reports