NZ retail spending on credit, debit cards rises in May, snapping decline

Wednesday 10th June 2015

New Zealanders spent more on their electronic cards in May, as increased retailing of consumable and durable products offset a flat month in hospitality and a decline in apparel.

The value of core retail spending, which strips out fuel and vehicle related items, rose 0.4 percent to $3.9 billion in May, turning around a 0.9 percent fall in April, according to Statistics New Zealand. On an annual basis, core retail spending on debit and credit cards rose 5 percent in May compared to the same month a year earlier. Total retail spending, which includes automotive and fuel spending, rose 1.2 percent last month, for an annual rise of 3.2 percent.

The dip in April spending prompted some analysts to reassess the strength of consumer confidence after unexpectedly strong growth through the March quarter, and Crown accounts yesterday for the 10 months through April showed the government's take from the Goods and Services Tax was more than the Treasury projected in its May 21 Budget forecast.

Today's data shows spending on durables rose 0.9 percent to $1.1 billion in May, snapping April's 1.1 percent decline, while consumable spending increased 0.6 percent to $1.7 billion. The gains in the two biggest measures in the index offset flat spending in hospitality, which was unchanged for the second month at $788 million, while electronic card spending on apparel declined for a third month, down 0.8 percent to $287 million, its lowest monthly level since January.

On an annual basis, all four core retail measures rose, with hospitality leading the charge up 9.2 percent in May from the same month a year earlier, while durables advanced 4.6 percent. Spending on electronic cards for consumables increased 4.4 percent in May from a year earlier, while apparel spending edged up 0.1 percent.

In actual terms, there were 125 transactions on electronic cards across all industries in May, with an average spend of $49. The total amount spent across all the transactions was $6.17 billion in the month.

BusinessDesk.co.nz

Comments from our readers

No comments yet