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)

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