The first full week of 2015 shows retail spending up by 1.3 per cent over the same week last year, although transaction volumes grew more strongly at three per cent, according to BNZ’s MarketView electronic transactions report.
The big story at present is the drop in fuel prices, with figures showing a 7.6 per cent decrease in spending over the same week last year, however, transaction volumes remain steady.
The savings are being redeployed in other categories, with clothing, footwear, and department stores all showing a welcome uplift in spending for the week.
Other categories enjoying growth include holiday staples, such as food, liquor, and takeaway.
The warm weather is also generating demand for the DIY category, with spending up 6.4 per cent on a 9.8 per cent increase in transaction volumes.
After a prolonged period of restraint, there is reason to believe Kiwi’s will revert to type and spend a little more freely, however, following the 2008 GFC, it appears we have learned to live within our means.