NZ retail spending on credit, debit cards picks up in June

NZ retail spending on credit, debit cards picks up in June

July 11 (BusinessDesk) – New Zealanders shook off the winter blues with retail therapy, with spending on credit and debit cards increasing 0.8% last month.

The seasonally adjusted value of total electronic card transactions climbed to $5.32 billion in June from $5.28 billion a month earlier, and was up 7.7% compared to the same month a year earlier, according to Statistics New Zealand. Spending on core retail industries, which strips out spending on vehicle-related industries, climbed 2.1% to $3.35 billion.

“The recent Q1 retail sales data had pointed to an improvement in household’s discretionary spending, with increases seen in the purchase of big-ticket items,” ASB economist Christina Leung said in a statement. “We expect a continued recovery in consumer confidence will underpin further recovery in retail spending over the coming year.”

The data reflects last month’s consumer confidence surveys which showed people shrugged off their pessimism in the wake of the Canterbury earthquakes. Retailers have struggled to attract spending since the country fell into its deepest recession in almost two decades in 2008, resulting in a seemingly endless sales season as they try to bring in customers.

The biggest gain came from spending on durables, which climbed 2.4% to $996 million, while expenditure on consumables climbed 1.4% to $1.46 billion.

Spending on fuel dropped 3.6% in June, following from May’s 4.5% decline, coinciding with falling fuel prices on the strong kiwi dollar.

The currency recently traded at 83.43 U.S. cents, virtually unchanged from 83.42 cents immediately before the release.

(BusinessDesk)

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