12 Nov 2013

Electronic card spend-up augurs well for retail figures

7:18 am on 12 November 2013

Core retail spending using electronic cards rebounded last month.

Excluding fuel and vehicles, official figures show core retail sales using debit, credit and charge cards rose a seasonally adjusted 1.8%, compared with the previous month, the largest since records began in October 2002.

Durables such as furniture, appliances and hardware led the way, up more than 4% on a monthly basis.

ASB chief economist Nick Tuffley says spending on durables has been strong over the last year and consumers are feeling more financially secure.

Total retail spending, which includes fuel and cars, rose 1.4%, in October compared with the previous month, when it declined by 0.9%.

The electronic cards figures covers about 65% of retail sales.

Excluding cars and vehicle parts, core retail spending jumped one by 1.8%, its largest monthly rise for an October since records began in 2002.

Statistics New Zealand says the increase is mainly due to people spending more on durable goods like whiteware, hardware and furniture. Spending on such goods was up by more than 4% or $46 million.