Online spending in New Zealand saw slow growth in March mainly due to weak growth in purchases from offshore sites.

Total online spending was only up five per cent in March compared to the previous corresponding period.

“It may partly be a timing “blip”,” said Gary Baker, Bank of New Zealand’s director, Institutional Research.  “April will provide further insight.”

Spending at domestic sites was up seven per cent compared to the prior year, in line with the growth in spending at local bricks-and-mortar stores.

Online spending at international merchants was up a mere two per cent compared to March last year.

“The international growth rate has been trending down, but this is the lowest we’ve seen,” Baker said. “It is difficult to pinpoint a single driver.”

Baker said observations and potential influences include: March last year was a particularly strong month for purchases from international sties, so they are comparing to a high base. Sales at international sites in March 2017 were up 22 per cent on March 2016, at a time when the prevailing annual growth rate had been running at around 15 per cent.

He said it could also be that growth in spending at physical stores was particularly strong this March, which may have substituted some online spending.

Growth patterns across categories were mixed. Sales of computers and electronic goods were very strong in March 2017, but showed moderate annual growth in March 2018. Likewise for Clothing, with purchases at international sites in March 2018 only up one per cent on last March.

According to Baker, annual exchange rate movements were a mixed bag (up vs the USD and AUD, but down vs GBP and EUR), but may have influenced spending.

Easter timing has also varied. The two main Easter holidays were in March in 2016, in April in 2017, and split across March and April in 2018.