NZ spending on debit, credit cards rises in August, as retail sales advance
Spending in core retail rose a seasonally adjusted 0.9% to $4 billion in August.
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New Zealand spending on electronic cards rose in August for the fourth consecutive month, as spending across all retail sectors increased.
Spending in core retail rose a seasonally adjusted 0.9% to $4 billion in August, accelerating from July's 0.6% gain, Statistics NZ said. On an annual basis, core retail spending rose 5.7% from August last year.
The electronic cards data adds to a mixed picture for the New Zealand economy. Business, consumer and farmer confidence have declined as dairy prices, the nation's key commodity export, remain lower for longer, prompting the Reserve Bank to cut the official cash rate by 25 basis points to 2.75% today. However, a weaker kiwi dollar is aiding exporters, while the economy is getting a boost from construction activity in Canterbury and Auckland, and strong inbound migration and tourists.
"While high levels of migration and strong tourist demand continue to provide support, over the coming months we do expect to see some softening in spending growth,"Satish Ranchhod, senior economist at Westpac Bank said in a note. "Consumer confidence has fallen sharply, and a likely softening in economic growth will weigh on employment and earnings growth over the coming year. In addition, the decline in the NZ dollar in recent months will push up prices for a range of imported goods, including durables and household furnishings."
A lift in spending was recorded across all retail sectors, with durables leading the gains up 1.5% from the previous month to $1.2 billion. Apparel rose 1.2% to $300 million, consumables increased 0.6% to $1.7 billion, and hospitality advanced 0.5% to $802 million.
Total retail spending, which includes fuel and vehicles, rose 0.5% to $4.7 billion. Electronic card spending on fuel declined 2.5% to $607 million in August, while vehicles declined 1.3% to $150 million.
Total spending rose 0.1% to $6.3 billion in the month, for an annual gain of 5% compared to the same month a year earlier.
There were 123 million transactions in August, up 4.5% from the same month the previous year. The average value of transactions was $50, with 55.8% putting purchases on their debit cards.
(BusinessDesk)
Suze Metherell
Thu, 10 Sep 2015
Thu, 10 Sep 2015
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NZ spending on debit, credit cards rises in August, as retail sales advance
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