10 May 2013

Rebound in retail spending due to colder weather

12:55 pm on 10 May 2013

A return to colder weather has prompted a rebound in retail spending using electronic cards, with consumers spending more on clothing and durable goods.

Debit, credit and charge cards spending fell a seasonally adjusted 0.6% in April, compared with the previous month.

Statistics New Zealand says people more was spent on clothing, footwear, and durables such as cosmetics and appliances, but less on groceries and fuel.

Shoppers spent 3% more on durables and 1.7% more on apparel, but 2.4% less on fuel because of a fall in fuel prices.

Overall, consumer spending rose by a seasonally adjusted 0.6%.

Spending for core retail excluding vehicles and fuel, went up by 1%.

Spending fell in March, which Statistics New Zealand put down to Easter, which meant two fewer trading days in the month.

ANZ Bank senior economist Mark Smith said cooler weather also prompted people to buy winter clothing and footwear.

On an annual basis, the pace of growth rose nearly 5% to $4.3 billion.

Electronic cards account for 65% of all sales.