12 Oct 2011

No Cup boost to card spending

1:45 pm on 12 October 2011

Spending using electronic cards rose slightly last month, but there was no big boost from the Rugby World Cup.

Figures from Statistics New Zealand show the value of retail spending using debit, credit and charge cardsrose by a seasonally adjusted 0.4% to just over $4 billion in September.

The largest increases were for durables like furniture and appliances and consumables like food and alcohol.

Spending on hospitality and clothing rose by a smaller amount.

Statistics New Zealand says that at this stage the Rugby World Cup does not appear to have given a big boost to electronic card spending.

But it says the data does not include cash sales and payments for accommodation, tickets and rental cars which may have been made several months in advance.

ANZ senior economist Sharon Zollner told Checkpoint business the pickup was much smaller than the 2% rise they had expected.

She believes the figures may reflect greater caution on the part of consumers worried about their debt and being more careful in their spending.