NZ: Electronic card transactions surges by 1.0% in March - ANZ

Liz Kendall, Senior Economist at ANZ, explains that after a dip in February (and a decent run of growth prior to that), New Zealand’s total retail ECT spending increased a solid 1.0% in March.

Key Quotes

“This outturn is solid and paints a picture of strong nominal spending growth of 1.8% q/q and 6.0% y/y. We expect consumption growth will moderate over the medium term, with households looking to rebuild their saving buffers, but with perhaps some boost later in the year from Government policies.”

“Retail spending on electronic cards increased 1.0% m/m in March (seasonally adjusted). This follows a revised 0.2% m/m dip in February, and a monthly pace of growth of 0.8% m/m over the preceding five months. Retail spending is growing strongly up 6.0% y/y.”

“Q1 was a reasonable quarter for overall retail spending. On a quarterly basis, the pace of growth is sitting at a solid 1.8% rate. In Q4, the Retail Trade Survey showed total retail sales volumes up 1.7% q/q.”

“‘Core’ retail ECT spending, which strips out motor vehicle-related spending, rose 1.6% m/m in March and was up 2.0% in the quarter. Core spending is growing at a very strong pace of 7.4% y/y.”