Retail Spending Still Down In September Quarter

The Stats New Zealand electronic card transactions for September, show total retail figures are flat compared to a month earlier, however the year on year September comparison shows a decline of 0.7%, and total retail for the quarter is down -4.4%.

“We have been speaking to a number of retailers over September and these numbers reflect the difficult sales environment that we are hearing about. While the economic numbers are improving it will take some time for consumers to feel that they have additional money in their wallet. Consumer confidence is key right now and retailers are hearing that consumers are worried about their job security and only purchasing the essentials” says Carolyn Young, Chief Executive at Retail NZ.

“Last week we were delighted with the 50-basis point cut in the Official Cash Rate, but until consumers see changes in their mortgages, loans or rent they will continue to keep their wallet firmly in their pocket. We are certainly hoping that there will be a lift in consumer confidence before the critical Christmas sales period.”

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