Retail spending using electronic cards was $5billion in March, up by $287million or 6.2% from March last year, Statistics New Zealand data showed yesterday.
Westpac Senior Economist Satish Ranchhod said despite modest gains in March, retail spending was still up a healthy 6.2% during the past year.
‘‘After solid gains earlier in the year, consumers paused for breath in March.''
Spending on electronic cards was up just 0.1% in March. Core spending, excluding the volatile motor vehicle and fuel categories, was up 0.2%, Mr Ranchhod said.
Following strong growth during the past year, things might start to look a bit more moderate.
Earnings and confidence in the economy were likely to be dampened by the downturn in the dairying sector.
‘‘Furthermore, tourist arrivals, which have been a key source of support for spending in areas such as hospitality, appear to have levelled off recently,'' ASB economist Kim Mundy said the surging tourism sector continued to shine through, even in the softer March month.
‘‘Hospitality spending grew the most of any component, up 0.4% month on month.
‘‘This strength is particularly evident in annual hospitality growth spending, which is sitting around a whopping 12%,'' she said.
Apparel was the weakest component in March. Spending growth fell 2.3% month on month, possibly reflecting a warmer than normal March.
Ms Mundy said petrol prices rose about 3.8% during the month, although that was not reflected in an increase in fuel spending to the degree expected.
‘‘Importantly, however, petrol prices remain relatively low and we expect that the extra disposable income that low petrol prices are affording households will continue to underpin household spending growth,'' Ms Mundy said.
