Story image

NZ spending on credit, debit cards rises in March on food, liquor gain

13 Apr 2015

New Zealanders increased their spending on credit and debit cards for a second month in March, led by an increase in consumables such as food and liquor, suggesting low interest rates, cheaper petrol and rising home values are loosening household wallets.

The value of core retail spending, which strips out spending on fuel and vehicle related items, rose 0.8 percent last month, for a 6.1 percent year-on-year gain, Statistics New Zealand said. Total retail spending also climbed 0.8 percent in March, led by a 0.8 percent gain in consumables, a 0.6 percent increase for durables and a 4.5 percent rise in vehicles.

The spending data comes after a range of indicators that point to a buoyant mood for Kiwis, including increased confidence about jobs in particular and a broader gain in consumer confidence in the first quarter, based on the Westpac McDermott Miller Consumer Confidence Index.

"The latest cards transactions data indicate that household spending has accelerated to start 2015," said Nathan Penny, an economist at ASB. "On-going employment growth and strong net migration inflows will continue to support spending growth this year. Also, lower fuel prices and interest rates will boost household disposable incomes as well as the housing market, further underpinning spending growth."

Penny said rural areas are the exception because the decline in the price of milk "will constrain incomes and spending."

In actual terms, card-holders made 125 million transactions across all industries in March, with an average value of $50. The total amount spent across all transactions was $6.3 billion.

The total value of electronic card spending, including services and other non-retail industries, rose 1.3 percent in the latest month, following a 0.4 percent gain in February.

Winners of 2019 Adobe Experience Maker and Marketo Revvie Awards announced
The Adobe Experience Maker Awards recognise Adobe Experience Cloud customers and partners.
Adobe opens up marketing opportunities with Roku
Adobe and streaming TV platform Roku are now offering Adobe customers the ability to precisely target consumer audiences moving to over-the-top content (OTT).
Adobe Summit kicks off the future of customer experience in Las Vegas
“Today, at Adobe Summit, we unveiled significant new capabilities in Adobe Experience Cloud, including the introduction of Adobe Commerce Cloud and Marketo Engage, and general availability of Adobe Experience Platform.”
Interview: CloudBNE's world of AR, AI, and geospatial tech
“In New Zealand I used to hear, ‘we are so small; the market isn’t big enough…’ I often hear the same thing in Australia and even through parts of Asia.  Could we have launched CloudBNE in New Zealand? absolutely.”
NZ's aged care population held back by digital divide
Aged care facilities are slow to provide WiFi access for residents, and interviewees said they would like to see aged care operators provide more support.
‘Buy-now-pay-later’ taking consumer markets by storm
A new survey shows that young people are embracing this new method of purchasing, with over 1.5 million users in the last year in Australia alone.
Better data management: Whose job is it?
An Experian executive’s practical advice on how to structure data-management roles within a modern business environment.
Platform9 and Intersect partner to bring unified cloud to A/NZ
“For Intersect, Platform9 represents the single most strategic solution to a set of challenges we see expanding across the board."