Liz Kendall, Senior Economist at ANZ, notes that New Zealand’s retail spending on electronic cards increased 1.0% m/m in August (seasonally adjusted), following a downwardly-revised 0.2% m/m lift in July.
Key Quotes
“Retail spending was again boosted by a 4.1% m/m increase in fuel spending, likely reflecting higher fuel prices.”
“‘Core’ retail spending, which strips out motor vehicle-related spending, posted a seasonally adjusted 0.7% m/m rise.”
“It’s important to view this data in context: strong growth in August comes on the back of modest growth through the first half of the year, particularly in the context of still-strong population growth.”
“But in trend terms, growth in ECT looks to have stabilised – perhaps supported by the Families Package – with the trend in retail and core spending up 0.6% and 0.4% m/m in August respectively.”
“We will be looking to see resilience in spending in coming months, given concerns about the strength of economic momentum into the second half of the year.”
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