Growth in spending on electronic network slows in January

Monday 7th February 2011

Growth in spending by shoppers using the electronic network operated by Paymark slowed in January, particularly on stormy days.

Annual growth in spending of 3.2% in January was down from 3.9% growth in December, and was the slowest rate since August 2010.

Paymark processes more than 75% of all electronic transactions in this country.

"The weaker figures appear to be a combination of wet weather and a general economic step-back," Paymark said.

Sales on January 23, when many regions experienced wild weather, were down 1.9% on the same trading day the previous year.

For the 14 days prior to this storm, the nationwide growth rate in spending averaged 4.1%.

People continue to use their own money, with credit card usage down 0.6%.

Takeaways, which saw a big increase in late December, had another spending upsurge in January with a year-on-year increase of 25%.

Hardware was also up 5% for the month.

The 3% growth in spending on clothing in January was down from 7% growth in November, while spending on accommodation has slowed to 2% growth year-on-year.

NZPA

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