NZ credit card spending posts biggest annual gain since 2008
NZ credit card spending in July posts biggest annual gain since January 2008
By Paul McBeth
Aug. 21
(BusinessDesk) - New Zealand spending on credit cards rose
for a seventh month in July, posting its biggest annual gain
since January 2008, before the global financial crisis set
in and eroded households' appetite to take on
debt.
Total billings in New Zealand advanced 1.7
percent to a seasonally adjusted $3.23 billion in July from
June, and were 9.7 percent higher than the same month a year
earlier, according to Reserve Bank data. Of that, spending
on New Zealand issued cards increased 1.8 percent to $2.85
billion, for an 8.7 percent annual rise, while billings on
overseas cards rose 1 percent to $384 million, and were 18
percent higher than July 2014. Total advances outstanding
rose an annual 5.7 percent to $6.44
billion.
Government figures this month showed the
value of spending on electronic cards rose 6.8 percent to
$6.26 billion in July from the same month a year earlier,
with core retail spending up 6.6 percent. The data showed
credit card transactions accounted for about 44.3 percent of
the 124 million transactions in the month.
Earlier
this week, the ANZ Roy Morgan consumer confidence survey
showed household sentiment was at a three-year low, amid
growing pessimism about the country's economic outlook.
A slump in global milk prices triggered the Reserve Bank to start cutting interest rates in June, and more recently prompted Fonterra Cooperative Group to slash its forecast payout to farmers, raising concerns the country's economic growth may stall.
(BusinessDesk)