New Zealand electronic card spending strong in September 2015

Spending on electronic cards continued to strengthen in September. Total retail spending climbed a strong 0.9% - its fifth solid gain in as many months. 

Underlying this was a strong 1.2% gain in core spending (which excludes the volatile fuel and vehicle categories). There's been notable strength in spending on durables. This may be because households are rushing to purchase items now before the fall in the NZD pushes up prices. There has also been strength in spending on hospitality and consumables.   

For the year as a whole, retail card spending has risen a very healthy 6.1%. 

While high levels of migration and strong tourist demand continue to provide support for retail activity, over the coming months some softening is expected in the spending growth. Consumer confidence has fallen sharply, and a likely softening in economic growth will weigh on employment and earnings growth over the coming year.