Brief spending lull during September

Brief spending lull during September

Figures released today by leading payments provider Paymark show spending through the Paymark network was up 5.3 per cent nationally from September 2012 to September 2013.

Paymark, which processes around three quarters of all electronic transactions in New Zealand, saw the accommodation sector as well as cafes and restaurants remain strong during the month of September, up 7 per cent and 7.9 per cent respectively.

However, annual growth was diluted at furniture / floor covering outlets (+3.4%), appliance stores (+5.9%) and hardware outlets (+4%), which have been strong performing sectors over the past year. Spending declined amongst clothing stores (-2.6%) and footwear shops (-1.2%).

Paul Whiston, Paymark Acting CEO, says that total spending growth was moderate over the month, culminating in a low annual growth rate of 2.9 per cent in the seven days ending 27th September.

“This was the week of the final few America’s Cup races and the $33 million Lotto jackpot, both potential influences on general spending. However bad weather, especially on Tuesday 24th September, appears to have been a major contributing factor to the slow down.

“Whatever the cause, I can report that spending growth has been a strong 9.1 per cent in the first week of October, suggesting a quick bounce back to the growth momentum that had developed.

“Stepping back and looking at the quarter, a promising aspect was to see eleven of the seventeen Paymark regions record their fastest seasonally adjusted growth of the last couple of years,” says Whiston.

“Spending increases over the quarter for the eleven regions ranged from just under 2 per cent per quarter in Hawke’s Bay to over 3 per cent per quarter in the Bay of Plenty, Taranaki, Palmerston North and South Canterbury, which is a positive sign,” he adds.

One of these regions, Palmerston North, topped the regions in terms of annual growth for the latest month at 8.4 per cent, followed by Marlborough (+7.9%) and South Canterbury (+7.6%). Auckland / Northland also recorded above average growth at 7 per cent year-on-year.

Once again spending was still below the same month last year in the West Coast (-0.9%) and growth was low in Wellington (+1.8%), Gisborne (+1.8%) and Wanganui (+1.9%).

In terms of the volume, the number of transactions through the Paymark network was 4.3 per cent higher than in September 2012, with credit card usage (+10.7%) increasing faster than debit cards (+2.5%).

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ENDS

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