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

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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