New Zealanders spent less on their credit and debit cards last month, led by a decline in spending on accommodation, bars, restaurants and clothing.
The value of total transactions fell 0.3 percent, seasonally adjusted, to $5.43 billion in February, according to Statistics New Zealand. That follows gains across all eight industry groups in January.
Spending on core retail industries, which strips out motor-vehicle related expenditure, fell 0.5 percent to $3.35 billion.
The decline in spending in the latest month raises questions about the sustainability of sales growth among retailers this year. Warehouse Group, the biggest retailer on the NZX, today said trading conditions are expected "to remain uncertain" through its financial year. While it lifted sales, profit adjusted to exclude a one-time gain fell in the first half.
Spending on accommodation, bars, cafes and restaurants fell 2.5 percent to $591 million in February, seasonally adjusted, and spending on apparel fell 2 percent to $274 million.
Warehouse's results showed clothing was the only product group where its sales declined in its first half.
Spending on durables, which includes furniture, hardware and appliances, fell 0.3 percent to $998 million. Consumables, which includes food and liquor, was the only core retail industry to show a gain, up 0.5 percent to $1.48 billion.
Total retail spending, including fuel and motor vehicles, fell 0.7 percent to $4.08 billion. Sales of fuel rose 0.1 percent to $634 million while spending on vehicles declined 1.2 percent to $107 million.
Unadjusted spending in core retailing rose 8 percent from February 2011, reflecting an extra day this year because of leap year. (The extra day represents a 3.6 percent longer month - 1/28 longer.)
(BusinessDesk)
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2 Comments
A 0.002739726% longer year. That extra little boost to GDP will sure be a bonus. People aren't spending because they decided to spend all their extra income on rent, mortgages, and fuel. With a bit put aside for a rainy day.
I rate myself as average, and if I'm sick of buying crap that doesn't last, for no real gain, I bet many other people are as well. An economy built on wasteful consumption is a doomed economic model. Too much money is wasted on landfill.
While conventional wisdom shows that prepaid debit cards are not the most affordable means of handling your purchases when in contrast to a bank checking account, the reality is that we are living in extraordinary financial times. According to a recent survey by Atlanta-based financial management advisory services business Bretton Woods Inc., the amount of money you carry with your checking can make choosing prepaid debit a cheaper choice. Article resource: Prepaid debit cards can be cheaper than checking, says study. Decline in spending is just a manifesttaion that people are becoming more aware now of the money value they use everyday.
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