According to data released by Statistics New Zealand on Tuesday, New Zealand retail spending on electronic cards rose for a 10th straight month in February, up a solid 0.7%. Core spending (which excludes the volatile motor vehicle and fuel categories) was up 1.2%. Feb data leaves the level of retail spending up a healthy 5.9% over the past year (after adjusting for seasonal variations).
Details showed that February saw solid gains in spending on both consumables and hospitality, results that were likely boosted by the current very strong tourist season. There were also continued gains in spending on durables and a pick-up in apparel retailing.
New Zealand consumer spending is being buoyed by record migration and tourism, low interest rates and a strong housing market which is helping the economy offset weaker returns for commodities.
"Looking to the year ahead, we're optimistic about the outlook for spending. Low inflation (including low petrol prices), strong population growth, and very low borrowing rates are all providing a boost to households. Add on strong tourist arrivals, and it's shaping up to be a solid year for retailers," said Westpac Banking Corp in a note to clients.
