Paymark reported “a year of two quarters” where spending recorded growth during the last quarter after experiencing downtrend earlier of the year.
According to Paymark, spending in the fourth quarter of 2020 surged 5 per cent year on year, a complete reversed trend compared to the spending in the June quarter, which dropped 15.5 per cent.
Core retail spending through Paymark reached $42.6 billion last year with an average spend of $42.58 on each transaction, increasing 1 per cent despite the ongoing Covid-19 pandemic.
The food and liquor sector retained strong performance during the year with an 11.5 per cent increase. However, the F&B service sector, which includes cafes, bars, and takeaways, experienced 2.7 per cent growth during the holiday season, but a 12.1 per cent plummet for the year.
Spending on consumer goods via Paymark surged 6.7 per cent in the December quarter, yet declined 3.2 per cent in total throughout the year.
The spending trend is also diverse in different regions. In regions including Auckland and Otago spending dropped for the year while smaller North Island regions such as Wairarapa, Wanganui and Gisborne experienced growth.