Retail spending rose 1.2 percent in June 2016 compared with May 2016, when adjusted for seasonal effects, according to the latest statistics from Statistics New Zealand.
This follows a 0.3 percent fall in May.
“For the first time in more than a year all six retail industries had increases in spending,” business indicators manager Clara Eatherley said. “This last occurred in March 2015.”
The largest increases in June 2016 were durables, up $17 million (1.4 percent), fuel, up $16 million (2.8 percent) and hospitality, up $14 million (1.5 percent).
The durables industry includes furniture, hardware, and appliance retailing; pharmacy, cosmetic, and toiletry retailing. The hospitality industry includes accommodation, bars, cafes and restaurants, and takeaway retailing.
Core retail spending (which excludes the vehicle-related industries) rose 1.0 percent in June 2016, after no change in May.
The total value of electronic card spending, including the two non-retail industries (services, and other non-retail), was up 1.0 percent in June. This follows a fall of 0.6 percent in May 2016.
In actual terms, total retail spending using electronic cards was $4.6 billion in June 2016, up $295 million (6.8 percent) from June 2015.
Trends for the total, retail, and core retail series have generally been rising since these series began in October 2002.
Values are only available at the national level, and are not adjusted for price changes.
Spending on credit and debit cards in New Zealand rose in June, led by increased spending on durable goods.
Consumer spending is being underpinned by record low interest rates and an expanded population due to record high migration and tourism levels.
“Gains in spending were widespread in June,” Westpac Banking Corp senior economist Satish Ranchhod said in a note. “There were particularly large increases in spending on durables (likely related to the continuing strength of the housing market) and apparel, possibly assisted by the recent turn in the weather. The strong tourism season also appears be boosting spending with a solid increase in spending on hospitality.
“Smoothing through recent volatility in spending and instead looking at annual figures, we’re left with a relatively firm picture for the retail sector,” he said.
Card-holders made 128 million transactions in June with an average value of $49. The total amount spent across all transactions was $6.3 billion.
