January spending shows growth for most

February 11, 2013

January spending shows growth for most

Figures released today by Paymark show that the new year has brought not only sun, but a positive start for many retailers.

January saw the total value of transactions through the Paymark network increase by $191 million nationally, a growth of 5.1 per cent year-on-year.

Paymark CEO, Simon Tong, says it’s an encouraging start to the year after modest spending in December.

“We’re pleased that the spending momentum that was evident in the last quarter has extended beyond the busy shopping season. The value of spending through the Paymark network increased by a seasonally adjusted 0.6 per cent from December to January, the fourth consecutive monthly gain.”

Paymark, which processes about 75 per cent of all electronic transactions in New Zealand, saw Canterbury once again enjoy the strongest spending growth of all the regions, up 8 per cent annually. Waikato (7.6%) came in a close second, followed by Wairarapa (5.6%).

“Despite the positive national figures, we’re aware that it’s still tough out there for some retailers, and in some regions,” says Tong.

“A number of sectors such as accommodation providers and consumer electronics retailers have experienced below average growth. Likewise, spending growth was weak in the West Coast and Southland.”

On a positive note, those linked to the building industry continued to experience strong growth; plumbing outlets (17.8%), and hardware & home decorating stores (11.6%) saw double digit lifts, while gardening stores (7.6%) and wholesale building suppliers (7%) were also up on the same time last year.

There was consistent growth across areas of the health sector suggesting Kiwis are looking for a healthy start to 2013. Dentists (17.2%), medical centres (10.1%), optometrists (9.1%) and pharmacies (6.3%) all saw spending increases.

It also appears car-owners are taking good care of their vehicles this summer with the automotive sector seeing growth in both repairs & servicing (14%) and parts & accessories (9.7%).

“Importantly, New Zealanders are still increasingly finding card payment to be convenient – for purchases both big and small. Nationwide in 2012, we increased our card spending by $1.5 billion. We hope to see this positive growth trend continue in 2013, and January has been a good start on balance,” adds Tong.

Nationwide, during January, the volume of card transactions was 6.3 per cent higher than a year ago, with credit card value (6.4%) increasing faster than debit card value (6.2%).

PAYMARK Regional Data (January 2013 versus same month 2012)
Volume (million transactions) Value of spending ($millions)
Region Last Year Current Year Volume Difference Last Year Current Year Value Difference
Auckland/Northland 28.33 30.16 6.5% $1,439.6 $1,512.4 5.1%
Waikato 5.84 6.32 8.1% $281.3 $302.6 7.6%
BOP 5.32 5.57 4.6% $266.8 $277.7 4.1%
Gisborne 0.80 0.83 3.6% $36.2 $37.2 2.9%
Taranaki/Taupo 1.84 1.95 6.0% $86.9 $91.4 5.2%
Hawkes Bay 2.24 2.37 5.8% $108.8 $114.3 5.0%
Wanganui 0.86 0.90 4.6% $38.2 $39.4 3.3%
Palmerston North 2.38 2.48 4.1% $119.7 $125.8 5.1%
Wairarapa 0.75 0.80 6.2% $35.6 $37.6 5.6%
Wellington 7.78 8.20 5.4% $360.4 $372.2 3.3%
Nelson 1.70 1.77 4.1% $86.2 $89.3 3.7%
Marlborough 0.96 0.99 3.2% $51.6 $52.8 2.3%
West Coast 0.59 0.58 -2.1% $33.9 $32.9 -3.1%
Canterbury 7.90 8.61 9.0% $403.2 $435.4 8.0%
South Canterbury 1.21 1.29 6.4% $66.7 $69.6 4.4%
Otago 4.12 4.37 6.2% $219.4 $229.4 4.6%
Southland 1.74 1.85 6.1% $95.8 $97.7 2.0%
New Zealand 74.38 79.04 6.3% $3,768.5 $3,959.3 5.1%
(growth rate this time last year) 1.8% 3.5%

ENDS

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