Positive growth trend continues in July

Positive growth trend continues in July
The mild July weather may have contributed to strong spending through the Paymark network, according to figures released today by the nation’s leading payments provider.

Paymark, which processes around three quarters of all electronic transactions in New Zealand, saw a 9.2 per cent increase in spending through its network nationally, between July 2012 and July 2013.

However, Paymark Head of Sales and Marketing Paul Whiston cautions that while the figures support the continued positive growth trend seen over the past twelve months, there are some contextual factors that need to be considered.

“There are several circumstances which are likely to have contributed to what appears, at face value, to be quite a spectacular lift in national spending,” he says. “July 2012 was a slow month, with five Sundays and poor weather. In contrast, we’ve just finished a July blessed with warmer weather and more workdays – which always impacts positively on spending figures.”

“In addition, petrol prices are around 10 per cent higher than a year ago, a factor which has likely influenced the increase.“

A continued increase in the number of contactless payments in recent months has also meant an increase in the total number of electronic transactions through the Paymark network.

“The number of monthly card transactions was 7.1 per cent up on a year ago. Contactless transactions were certainly a part of this, but it’s important to note that a lift in the number of transactions doesn’t necessarily point to an increase in spending. It may be that some contactless payments are beginning to displace cash.”

Retailers operating clothing stores (+3.7%), footwear shops (+0.1%) and department stores (+2.1%), continued to experience low annual growth during July, demonstrating that the overall lift is not echoed in all sectors.

“There are still retailers out there who are really struggling with the current market conditions and our figures are reflecting that,” continues Whiston. “Conversely, the likes of hardware stores, furniture and floor covering outlets, as well as takeaway food outlets and cafes and restaurants continue the momentum of strong annual growth.”

Regionally, annual spending growth was strongest in Palmerston North (+11.6%), Canterbury (+11.4%), Marlborough (+11.3%) and South Canterbury (+11.3%). Spending through the Paymark network once again declined on the West Coast (-0.6%).

ENDS

© Scoop Media