Card spending continues to grow
AUCKLAND: New Zealand spending on electronic cards grew in every sector for a second month running amid upbeat consumer confidence and increased government support for households.
Seasonally adjusted total retail spending on credit and debit cards rose 1.1%, matching the increase in August. Core retail spending, which strips out expenditure on petrol and vehicles, also rose 1.1% in September, a faster pace than the 0.9% recorded in August.
Spending rose in all sectors, led by 1.3% gains in spending on services and other nonretail industries. Spending on consumable items rose 1% and was up 0.9% on apparel. Expenditure on vehicles and durable goods were up 0.8%, while spending on fuel and on hospitality each gained 0.4%.
The widespread increases follow the July introduction of the government’s Families Package, but predate Auckland’s regional fuel tax hike.
The ANZ Roy Morgan consumer confidence survey last month showed consumers were still in good heart, although households were less likely to buy big ticket items than they had been for the past three years. The New Zealand Institute of Economic Research’s quarterly survey of business opinion showed retailers remained pessimistic, as rising costs squeezed profitability.
Westpac Banking Corp senior economist Satish Ranchhod said he expected retail spending to continue rising, but at a more moderate pace.
‘‘While spending is now being supported by the government’s Families Package, dis posable income growth still remains fairly modest,’’ he said. ‘Many households are finding their spending power is being crimped by rising costs for necessities like fuel.’’
This week’s data shows actual spending on electronic cards rose to $6.92 billion in September, up 4.9% from a year earlier. Core retail spending was up 5.1% to $4.39 billion. Spending on petrol jumped 11% to $640 million and hospitality spending rose 7.3% to $997 million.
Credit cards accounted for 52.3% of 143 million transactions, compared with 49.3% of 137 million transactions in September last year. The value per transaction was $48, unchanged from a year earlier. — BusinessDesk