Kyle Uerata, Economic Statistician at ANZ, notes that New Zealand’s retail spending on electronic cards increased 0.7% m/m in July (seasonally adjusted), following a 0.8% m/m lift in June.
Key Quotes
“Fuel spending rose 2.1%, likely reflecting higher prices at the pump in Auckland after the introduction of the regional fuel tax.”
“‘Core’ retail spending, which strips out motor vehicle-related spending, posted a seasonally adjusted 0.3% m/m rise – in line with its 12-month average.”
“In trend terms, monthly growth in core spending continues to track sideways (0.2% m/m).”
“Looking through the impact of higher petrol prices and volatility in fuel spending, we’re left with a pretty modest picture for consumer spending.”
“On the back of a weak cards spending in Q2, the lack of a strengthening underlying picture is a bit of a concern, but it’s still early days in terms of Q3, and cards transactions are far from a perfect indictor for GDP consumption expenditure.”
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