NZ spending on plastic cards edges up in March, led by hospitality

Monday 11th April 2016

New Zealand retail spending on credit and debit cards rose in March, led by increased expenditure at bars and restaurants as they continue to enjoy the tourism boom.

Retail spending gained 0.1 percent, seasonally adjusted, in March from February, while actual sales were up 6.2 percent to $4.95 billion from the same month a year earlier, Statistics New Zealand said. Stripping out spending on fuel and vehicle, core retail spending was up 0.2 percent in the month.

Hospitality led the monthly gain, rising 0.4 percent, and was up 12 percent from March 2015 at $924 million. Retail and accommodation spending was one of the major limbs of economic growth in the December quarter as record visitor arrivals bolstered the country's tourism spend.

"The surging tourism sector continues to shine through, even in this softer month," ASB Bank economist Kim Mundy said in a note. "This strength is particularly evident in annual hospitality growth spending, which is sitting around a whopping 12 percent."

Today's figures show spending on consumables, the biggest component, increased 0.2 percent in March, and was 6.6 percent higher than a year earlier at $1.81 billion. Spending on durables edged up 0.1 percent in the month, for a 6.2 percent increase on the year to $1.16 billion. Apparel spending dropped 2.3 percent in March and was up a more modest 3.5 percent on the year to $292 million.

Spending on petrol rose 0.3 percent in the month, ending two months of declines, and was down 1.7 percent from a year earlier at $598 million. Expenditure on vehicles shrank 0.5 percent in the month and was 6.5 percent higher than a year earlier at $160 million.

Card spending on services, spanning everything from repairs and maintenance to funerals, fell 0.6 percent in March, for a 6.3 percent increase on the year at $246 million, while non-retail industry spending shrank 0.2 percent in the month and was 5.1 percent higher than a year earlier at $1.43 billion.

Total spending on electronic cards rose 5.9 percent to $6.62 billion in March from a year earlier, across 133 million transactions, up 6.5 percent on the year.

BusinessDesk.co.nz

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