March Spending Slows During Easter Period

Media Release
Date: 8-April-13

March Spending Slows During Easter Period

Figures released today by New Zealand’s leading payments provider Paymark, show year-on-year spending growth slowed during March as a result of Easter falling pre-April for the first time since 2008.

The total value of transactions processed through the Paymark network increased 3.1 per cent between March 2012 and March 2013. However, the annual growth rate was running at around 5.7 per cent in the first 21 days of March, only to decline over the Easter holiday period.

As such, Paymark saw the seasonally adjusted ex-fuel spend total decrease 1 per cent from February to March, the first month-on-month decline since September 2012.

Paymark CEO, Simon Tong, says that Easter often brings a slowing in spending growth.

“Good Friday and Easter Sunday are two of the quietest spending days in the year, due to many retailers remaining closed to comply with trading laws.

“Often because these days are in quick succession, it can have a slow down effect on the overall spending growth for that month.

“In addition, as many Kiwis head away for their Easter holiday we tend to see a shift in spending in the major cities, to spending in the smaller resort–based regions,” says Tong.

Spending in the 5 days ending Easter Monday was down in the Auckland/Northland (-14.8%), Wellington (-16.7%) and Canterbury (-8.6%) regions versus the same 5 days last year. Yet Bay of Plenty (+5.5%), Hawkes Bay (+3.9%), Marlborough (+22.5%) and the West Coast (+2.3%) all saw growth during that same period.

“It is important to note that this is the first year since 2008 that the Easter period fell in March instead of April, a significant contributing factor to the year-on-year spending totals for the month,” adds Tong.

“However, when you compare the Easter spending period with the five days of Easter in April 2012 we actually had a much more positive result, with spending up $48 million or 8.8 per cent nationally.”

The Easter impact was also apparent throughout the sectors.

Spending in the month of March was up amongst accommodation providers (+7.0%), including hostels and camping grounds (+18.2%). Likewise rental vehicles (+5.8%), cafes and restaurants (+8.4%) and gardening stores (+9.7%) saw substantial growth, implying Kiwi’s were keen to get out and about during March.

In the regions, Marlborough (+10.0%), Hawke’s Bay (+6.0%) and Canterbury (+5.1%) led the way in terms of highest annual growth rates. However, year-on-year growth slowed in the major centres such as Auckland/Northland (+2.7%) and Wellington (0.0%) for the month.

Nationwide, the number of card transactions was 3.8 per cent higher than a year ago, with credit card usage up 6.4 per cent and debit card usage up 3 per cent.

ENDS

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