Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ retail spending on electronic cards rises in May

NZ retail spending on electronic cards rises at fastest pace in seven months in May

By Tina Morrison

June 11 (BusinessDesk) - New Zealand retail spending on credit and debit cards rose at its fastest pace in seven months in May, with gains across all six retail industries measured.

The value of retail spending on electronic cards rose a seasonally adjusted 1.3 percent in May from a 0.4 percent pace in April and no change in March, Statistics New Zealand said. That was the fastest pace since a 1.8 percent increase in October.

Spending appears to have picked up, having dropped off earlier in the year as consumer sentiment was hurt by a slowdown in the housing market and higher credit costs after mortgage lending restrictions introduced by the Reserve Bank in October started to bite and as the central bank began a cycle of interest rate hikes in March. Electronic card transactions account for about two-thirds of all retail spending.

"The solid increase in retail spending in May reflected continued high levels of consumer confidence, which helped to support spending in discretionary areas such as hospitality. Meanwhile, population growth is driving increased spending on necessities such as groceries," ASB Bank economist Christina Leung said in a note. "We expect continued positive developments, such as an ongoing recovery in the labour market, will encourage further growth in consumer spending over the remainder of 2014."

Reserve Bank governor Graeme Wheeler is tomorrow expected to hike the benchmark interest rate for a third time this year and signal further increases are on their way as he attempts to slow inflation.

"With a stronger household sector underpinning continued growth in the New Zealand economy, we expect the RBNZ will continue to tighten monetary policy over 2014 and 2015," said ASB's Leung.

Today's figures showed core retailing, which excludes spending on fuel and auto-related items, gained 1 percent in May, following increases of 0.2 percent the previous two months.

The value of total electronic card purchases, including services, rebounded 1.7 percent to $6.1 billion in May, following declines of 0.2 percent the previous two months.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news