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

 


Pre-Election Spending Cycle Apparent for 2014

Pre-Election Spending Cycle Apparent for 2014 – But it’s a Mixed Bag


Auckland, June 15 2014; Election years have been known for their faster economic growth and this year spending through the Paymark network hints that the election cycle is in swing again. However the experience is mixed across regions and sectors.

Nationwide spending through the Paymark network between June years 2013 and 2014 – the last full financial year before the September election – was up 7.3 per cent. This contrasts with growth rates experienced in 2012/2013 and 2011/2012, which both sat at 3.6 per cent.

Over the last three years, total spending through the Paymark network has increased 15.2 per cent. Unsurprisingly, Canterbury has been at the fore of growth over the last three years, particularly in the last two years during which spending increased by 17.6 per cent. However this rate of growth was matched by Auckland (17.6 per cent) and surpassed by Palmerston North (20.0 per cent), illustrating the wider nature of the recovery.

That said, spending in regions such as Wellington, Wanganui, and West Coast has struggled to increase in three years by as much as experienced in one year in the above regions.

“It is pleasing to see faster growth in the last 12 months, both for us and our customers,” says Mark Spicer, head of customer relations at Paymark. “But the reality is that growth per merchant has been modest on average in the last three years and for some businesses, it has been below expectation.“

The average spending increase per merchant during the three years was 10.4 per cent. Sectors with above-average per-merchant spending growth included hardware stores (+37.4 per cent) and cafes/restaurants (+21.7 per cent), both experiencing a strong increase in the number of transactions, and the automotive sector (+16.3 per cent) where higher petrol prices contributed. Spending per merchant increased much less amongst clothing retailers (+7.7 per cent), chemists (+3.4 per cent) and fruit produce retailers (+1.1 per cent).

In the most recent month, the growth rate has slowed but a late start to winter is thought to be a key factor. Spending increased 5.9 per cent year-on-year.

Annual growth for the month remained strong amongst food and liquor stores (+9.7 per cent) and across the hospitality sector (+9.9 per cent). But there was a noticeable decline in spending (June versus June) amongst department stores (-4.0 per cent), appliance retailers (- 6.5 per cent), clothing shops (-5.3 per cent) and footwear outlets (-1.1 per cent).

“It would be prudent to not read too much into the slow growth rate for last month” warns Mark Spicer, “as the mild start to winter has meant a delay for winter goods purchases. Weather often has a marked effect on the volume of payments through our network so as it gets colder, we’d expect to see an increase in spending at those outlets that provide appliances and services that keep us warm and dry.”

The annual growth rate was highest in Southland (+8.5 per cent) and Otago (+6.8 per cent) and lowest in South Canterbury (+0.9 per cent), Nelson (+1.1 per cent), Taranaki (+1.9 per cent) and West Coast (+2.0 per cent).
- ENDS -

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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