Satish Ranchhod, senior economist at Westpac, explains that New Zealand’s retail spending on electronic cards fell by 2.3% in December, and the print was much weaker than the consensus as the nominal spending was pulled down by a sharp fall in petrol prices.
Key Quotes
“In part, December’s fall in spending was due to falls in fuel prices, with pump prices down around 7% over the month.”
“December actually saw spending in core (non-fuel) categories dropping by 1.5%. That included a very sharp drop in spending on durable items like furnishings, reduced spending on apparel, and essentially flat spending on hospitality. There was also a small drop in online spending levels.”
“Over the coming year, we expect spending growth will be challenged by a further slowdown in population growth. Price competition is also expected to remain fierce.”
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