Retail card spending saw a modest uplift in October, signalling a positive trend ahead of the year’s busiest shopping season.

According to Stats NZ’s latest Electronic Card Transactions, retail card spending rose 0.8 per cent year-on-year last month. 

By category, spending on consumables and fuel was up 0.8 per cent and 0.5 per cent, respectively. Meanwhile, durables, apparel, motor vehicles, and hospitality reported declines of 0.1 per cent to 1.4 per cent.

“It’s almost a relief to continue to see some positive news in retail,” said Retail NZ CEO Carolyn Young.

“As we head into the important Black Friday, Christmas and Boxing Day sales period, it’s going to be important to see continued improvements across the whole sector. We know businesses have been hanging in there waiting to see an improvement in the economy.” 

Young noted that the actual card spend in October was below the current rate of inflation, which is at 3 per cent.

“We are still seeing liquidations and closures across the sector, although some regional areas are showing signs of improved trading on the back of strong dairy prices. 

“We remain hopeful that the Reserve Bank’s recent OCR cut to 2.5 per cent signals potential relief ahead. However, retailers are not noticing any immediate change in consumer spending,” she added.