Retail New Zealand Cards – for purchases in New Zealand on debit, credit and store cards.
In November -2.3% y/y
For the mm/m, no change (ie 0% m/m)
- previously revised to +0.7% m/m (from +0.6)
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Card spend data covers approximately 68% of primary retail sales in NZ. It is used as the main retail sales indicator for the country.
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The previous report showed that for October 2024, New Zealand's electronic card sales spend was up 0.6% compared to September, marking the third consecutive monthly increase. However, on a year-over-year basis, retail card spending decreased by 1.1%, an improvement from the 5.6% decrease seen in September.
The increase in spending was due to economic stimulus, including tax cuts implemented at the end of July and the Reserve Bank of New Zealand starting a rate cut cycle in August. These measures have strengthened consumer spending appetite, particularly in discretionary areas such as dining out and durable goods.
Despite these positive trends, challenges remain. The labor market has weakened, with unemployment rising to 4.8%, and population growth has slowed due to a reduction in net migration. These factors could tighten the pace of recovering sales costs in the coming months, as it did in the November figures just outside.
