Statistics New Zealand figures show electronic card retail spending rose 1.1% in April, mainly on the back of a 2.2% rise in spending on groceries. Sales were up 4.5% annually.
The rise in grocery spending in April could have been boosted by Easter and Anzac holidays, he said.
The April lift followed falls in spending in February and March.
Spending in categories such as durables, apparel and hospitality was still below that seen at the start of the year.
"Some of the softness in spending we’ve seen is likely to be a symptom of the slowdown in the housing market since late 2016, which followed last year’s tightening in lending standards and a rise in mortgage rates. This is likely to be a drag on spending for some time yet."
Providing some offset to the drag on spending came from strong population growth and the strong tourism season, he said.
Balancing those factors out, moderate spending growth was expected in coming months, Mr Ranchhod said.
