Consumer spending showed no sign of improvement in March despite the reduced interest rates, according to payment company Worldline.

Consumer spending through core retail merchants in Worldline NZ’s payments network was $3.95 billion in March, down 0.8 per cent year-on-year.

Spending on food and liquor rose 0.8 per cent, while spending at hardware/furniture stores fell 6.2 per cent. The Hospitality sector recorded a 3.2 per cent decline.

“The core retail merchants, excluding hospitality, experienced slight spending growth during the month, albeit the growth rate was low and the experience of merchants was mixed,” commented Worldline NZ’s chief sales officer Bruce Proffit.

“It seems the lower interest rates that were recently announced are yet to show in big-ticket spending, especially.”

In February, the central bank cut its benchmark rate by 50 basis points to 3.75 per cent amid moderating inflation.

Proffit added that the annual comparisons for March are complicated by the fact that Easter days fall differently each year. However, the daily data pointed to a retail sector that is still not growing.

By region, spending growth remains the highest in Whanganui (up 2.9 per cent). Wellington and Canterbury were among the weakest, with spending down 2.3 per cent and 1.5 per cent, respectively.