A strong rebound in retail spending using electronic cards in March was encouraging, but may be related to the early timing of Easter this year, economists said.
Electronic card transactions (ECTs) shot up a seasonally adjusted 2.1 percent in March from February, the largest monthly rise since November 2007. That followed a 0.3 percent monthly decline in February.
Among the core retail category, which excludes vehicle-related industries, the rise was 2.2 percent, the biggest increase since November 2004.
The actual value of core retail transactions rose 4.6 percent from March 2009, Statistics New Zealand said.
The data suggested that consumer spending was picking up speed, though the early Easter may have pushed more sales into March than usual, Deutsche Bank economist David Plank said.
"We anticipate that growth will continue to strengthen as the year progresses and as the broader economic recovery begins to be reflected in a stronger labour market, with some spending also likely to be advanced ahead of a possible rise in Goods and Services Tax later this year."
ANZ economists said the data was encouraging, although pressures on household spending included low income growth and weak housing market conditions.
Total transactions using electronic cards rose a smaller 1.2 percent from February as the non-retail category, including such services as travel and health as well as wholesaling, slipped 0.2 percent, Statistics NZ show.
Electronic transactions for the consumables category, which includes food, liquor and chemist retailing, rose a seasonally adjusted 1.4 percent in March from February.
Durables, which include furniture, hardware, and appliance retailing, were up 2.7 percent, as were personal and household services including hire and repair, while fuel gained 2.2 percent, coinciding with a rise in fuel prices.
