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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news