Retail spending in New Zealand using credit and debit cards rose 0.9 per cent in April, according to data from Statistics New Zealand.

Card-holders made 131 million transactions in April with an average value of $49. Retail spending using electronic cards was $4.8 billion, up $348 million (7.8 per cent) from April 2015.

“After pausing for breath in March, consumers threw their wallets open in April,” said Satish Ranchhod, Westpac Banking Corporation senior economist. “Spending on electronic cards was up a solid 0.9 per cent for the month, exceeding even the most optimistic market forecast.”

“This left spending up 8.6 per cent over the past year (though changes in the timing of Easter will have inflated this figure),” Ranchhod said.

Neil Kelly, business indicators senior manager at Statistics New Zealand, said the largest increase seen was in the hospitality industry, as was the case last month. Spending rose in five of the six retail industries, while the consumables industry remained relatively unchanged.

Ranchhod said the strong levels of tourist arrivals have boosted spending in the hospitality sector.

“In addition, low borrowing rates and the strength in the housing market are also providing domestic consumers with a powerful shot in the arm. This bodes well for retail spending over the coming months,” he said.

He added there will likely be some softening in spending longer term as the headwinds buffeting the economy, such as lower earnings in the dairying sector, start to bite.

The largest movements in April 2016 were in the hospitality sector, up 1.5 per cent to $13 million; fuel, up 1.8 per cent to $10 million; vehicles (excluding fuel), up 6.5 per cent to $9.8 million.

Core retail spending (which excludes the vehicle-related industries) rose 0.4 per cent in April 2016, after a 0.2 percent rise in March.