Electronic cards spending falls for a second month in March

Tuesday 11th April 2017

New Zealand retail spending on electronic cards fell for a second month in March, following a strong gain in January.

Retail spending on credit and debit cards fell a seasonally adjusted 0.3 percent last month, following a 0.6 percent decline in February, in part reflecting a fall in petrol prices, Statistics New Zealand said. The declines come after a 2.7 percent increase in January, the biggest monthly increase since January 2006.

Spending fell in three of the six retail industries in March, the agency said. Fuel retailing recorded the largest decline, down 1.9 percent, followed by a 0.3 percent fall in durables spending and a 0.2 percent drop in consumables spending.

"The fall in retail card spending in the March month was driven by a decrease in fuel spending, which coincides with a price drop of fuel,” Stats NZ business indicators senior manager Neil Kelly said. “However, fuel spending for the March quarter remained high."

The Reserve Bank is keeping a close watch on consumer spending after an unexpectedly strong consumption surge through the second half of last year, amid concerns people are more willing to fund retail purchases with debt.

Today's figures show core retail spending, which excludes vehicle-related industries, dropped 0.1 percent in March from February. Bucking the trend, hospitality spending edged up 0.1 percent, apparel spending increased 0.8 percent and vehicle spending rose 1.5 percent.

Of the non-retail industries, non-retail excluding services advanced 0.6 percent from February while spending in the services industry rose 1.1 percent.

Actual retail spending climbed 5.6 percent to $5.2 billion in March from the same month a year earlier.

Card-holders made 143 million transactions in March, up from 128 million in February and 133 million in March last year, with an average value of $49.

(BusinessDesk)

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