New Zealanders spend more on credit cards in May

NZ credit card billing resilient in May, signs of life in the economy

By Paul McBeth

June 22 (BusinessDesk) – New Zealanders spent more on their credit cards last month, indicating signs of life in the economy as people start getting more comfortable about buying again.

Total card billings rose 0.6% to $2.54 billion in May, and are up 5.1% from the same month a year ago, according to Reserve Bank data. Total advances outstanding rose a seasonally adjusted 0.5% to $5.43 billion in May, and are up 2.8% from a year ago.

“Consumption growth is in a fairly muted range, but there is some resilience there,” said Mark Smith, economist at ANZ New Zealand. “It suggests the economy is still moving forward.”

The release comes after a Westpac McDermott Miller survey showed people are more optimistic about the labour market and where it’s going in the future.

Smith said income growth was helping underpin spending, even as households retire debt to strengthen their balance sheets. Private sector wages rose 0.6% in the three months ended Dec. 31 for an annual gain of 1.9%, according to government data.

Overseas credit card billings rose 0.8% to $309 million in May, and Smith said the slow growth reflects the drop-off in visitors during that month.

(BusinessDesk)

© Scoop Media