NZ credit, debit card retail spending rises 1.9%

Retail spending on electronic cards jumped in September as the hospitality sector bounced back with the start of spring attracting more tourists.

Spending rose a seasonally adjusted 1.9% last month, turning around a 1.2% drop in August, with bars and restaurants benefiting from strong tourist numbers, Statistics New Zealand figures show.

Actual retail spending climbed 6.1% to $4.75 billion in September from the same month a year earlier, with fuel the only sector to register a fall, reflecting cheaper petrol prices.

Hospitality spending, which spans accommodation as well as food and beverage, rose 16% to $885 million from a year earlier, its fourth month of double-digit growth. On a seasonally adjusted basis, hospitality spending was up 2.5%, turning around a drop in August.

"The hospitality spending increase coincides with an increasing number of international visitors to New Zealand," Statistics NZ business indicators senior manager Neil Kelly says.

Tourism has been a boon for New Zealand's economy with record numbers of visitors spurring consumer spending.

That's combined with rapid net inbound migration to boost aggregate demand in the economy, helping offset tepid growth on a per capita basis.

The figures show spending on consumable items rose 5.3% to $1.73 billion in September from a year earlier, and was up 0.8% in the month, while durable items expenditure was 5.6% higher than a year earlier at $1.14 billion to register a 2.9% monthly increase. Spending on apparel rose 5.6% to $271 million from September 2015, with a 2% gain in the month.

Spending on fuel fell 3.8% to $562 million from a year earlier, while spending on vehicles rose 7.4% to $159 million.

The total value of electronic card spending including the two non-retail industries – non-retail excluding services and services – rose 6.3% to $6.39 billion from September 2015, and the number of transactions across all industries rose 7.3% to 130 million with an average transaction value of $49.

(BusinessDesk)

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