Electronic card spending is up 4.2% on a year ago, rising by $205 million to $5.1 billion for October, underpinned by the hospitality and tourism sectors.
Data from Statistics New Zealand showed shoppers continued to spend more in restaurants, takeaway shops and on accommodation during October. The largest increase was a 15% gain in the hospitality industry, up by $124 million.
SNZ's business indicators manager, Tehseen Islam, said the higher hospitality spend coincided with rising international tourism in New Zealand, record levels of migration and an eight-year low in unemployment.
Seasonally adjusted, retail spending rose 0.6% from September. The largest rises in card spending were consumables, up $15 million, or 0.8%, and hospitality, up $10 million, or 1.1%.
Westpac's senior economist, Satish Ranchhod, said the October spending was ''widespread'' and, overall, added to the increasingly ''positive picture'' for the country's households.
Spending was supported by several factors, including low interest rates, strong population growth, and strong house prices.
''The firming in the labour market will also be providing a boost to households' spending appetites,'' Mr Ranchhod said.
ASB economist Daniel Snowden said while spending growth slowed in October, the overall pace of spending during the past 12 months remained robust, supported by tourism in particular.
He said hospitality remained the ''hot sector'' with annual growth up to 15.7%.
''That's by far the fastest rate of growth in the six spending divisions, as tourism to New Zealand shows no sign of slowing just yet,'' Mr Snowden said.
