Bad weather and nervousness before the budget are to blame for constrained growth spending in May, according to Paymark. Paymark's latest figures reveal that at 1.3% last month's growth in spending was flat compared to the same period last year.
Bad weather and nervousness before the budget are to blame for constrained growth spending in May, according to Paymark.
Paymark’s latest figures reveal that at 1.3% last month’s growth in spending was flat compared to the same period last year.
Simon Tong, Paymark chief executive, said bad weather, nervousness ahead of the May budget and an increased anxiety about the global financial markets may have caused the spending to decelerate mid-May and slow down further towards the end of the month.
“Rain was just one part of the puzzle for retailers last month. For most people, money is still tight and there may have been some restraint in advance of the Budget.
“Whatever the reasons, similar to the pattern of recent months our network is seeing subdued spending, a trend which suggests continued cautious sales forecasting for retailers.”
While people drunk significantly less alcohol last month compared to the same period last year, eating out was more popular this year. Consumer spending at cafes and retardants around the country was up 6%, with takeaway food up 7%, while liquor spending was down 8%.
Footwear spending growth was a whopping 21% across the country.
While the value of last month’s spending was lower compared to last year, the volume of transactions was 3% higher.
Credit card transactions also dropped by 4%, while debit card transactions were up 4%.
The fastest growth rates were around the Waikato, Bay of Plenty and Gisborne areas. Nelson, Marlborough and Canterbury experienced significant declines.
Auckland and Wellington at 1.6% growth in spending were slightly ahead of the national average.
Paymark processes more than 75% of all electronic transactions in the New Zealand retail market on behalf of more than 50 card issuers and acquirers with more than 73,000 merchants and 100,000 terminals connected to the network.
