Electronic card spending up 0.4% in month

NEW Zealanders are still opening their wallets, although wet weather has dampened some enthusiasm for spring clothing.

Seasonally adjusted electronic card spending lifted 0.4% in September after a 1.2% rise in August, Stats NZ said. Economists polled by Bloomberg had expected a lift of 0.2%.

Core retail spending, excluding fuel and vehicle purchases, rose 0.6% after increasing 1.4% in August.

‘‘After some very sluggish spending growth in the first half of the year, we may now be seeing the early signs of a resurgence in New Zealanders’ spending appetites,’’ Westpac Bank senior economist Satish Ranchhod said.

September was the second month spending was higher than expected.

Mr Ranchhod noted the lift in retail spending came after the Reserve Bank cut rates by 50 basis points in August and after a pickup in house price growth in recent months.

‘‘This will be a welcome development for the RBNZ, who have been looking for signs that reductions in the cash rate over the past year are supporting demand,’’ he said.

However, he still expected the central bank to cut the official cash rate again in November.

‘‘If we continue to see the housing market strengthening and households ramping up their spending, the RBNZ will likely feel more comfortable that they have done enough to support demand as we go into the new year,’’ he said.

This week’s report showed spending on clothes and shoes decreased the most in September, down $12 million or 4%, after a 5.3% increase in August.

Spending on fuel fell 0.6%, or $3.7 million, after falling 1.4% in August.

Spending on durable goods, such as electronics, hardware, furniture, and appliances, rose 0.4%, as did spending on hospitality.