Kiwis' spending rate shoots up

New figures reveal New Zealand has recorded its highest spending growth rate in seven years.

The Paymark network, which processes more than 75% of all electronic transactions in the New Zealand retail market, has released figures showing transactions within the country last year stood at $52.3 billion.

This figure is up 6.6% on the year before.  

The holiday period brought in a lot of extra spending, with $5.3 billion spent in the month of December; up $300 million on the year before.

On Christmas Eve, Paymark recorded its biggest day on record with $263.5 million processed through the network, up by an unprecedented 10.5% on 2013.

Paymark customer relations head Mark Spicer says the national growth is strong, given that low fuel prices will be having some impact.

Big spenders around the country included Otago, where spending was up an extra $23 million. bringing the total to just under $300 million.

Nelson also experienced a sizable boost, with shoppers ringing up $112 million; up from $103 the year before.  

Mr Spicer says the strong growth in Otago and Nelson could reflect a combination of factors.

“Both regions are home to popular tourism hotspots attracting both domestic and international visitors.  

“With a strong year for tourism in these areas plus Christmas spending, both Otago and Nelson are likely reaping the benefits of this combination.”

Mr Spicer says the food and beverage sector has consistently shown strong growth throughout 2014.  

“The value of transactions for 2014 was up by 11.6% in the accommodation sector and 11.2% in the food and beverage sector, which includes cafes, restaurants and bars, when compared to 2013.”

Furniture, flooring and homeware stores were also strong spending locations, up 10.6% on December 2013; and the hardware, building and garden supplies sector was up by 13.7% on December the previous year.

Paymark also recorded its 13 billionth transaction on Saturday, 27th December after securing its 12 billionth on January 31,  2014.

Mr Spicer says achieving this milestone in less than 11 months may reflect the growth in contactless transactions over the past year.

Jwalls@nbr.co.nz

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