Retail card spending growth was slightly stronger than expected last month and provided evidence that growth continued at a moderate rate.
The seasonally adjusted value of total transactions on electronic cards rose 0.6% to $5.46 billion last month, according to Statistics New Zealand. That is the second gain in the past six months.
Core retail spending, which strips out motor vehicle-related expenditure, rose 0.7% to $3.39 billion, with a 1.1% in consumables, a 1% increase in durables and a 1.4% rise in hospitality.
Spending on apparel bucked the trend, falling 3.7% to $271 million in April.
The figures came after The Warehouse Group, the country's biggest listed retailer, said clothing and footwear were the only divisions that did not show a pick-up in consumer demand in the three months ended April 29.
The Warehouse reported total sales for the quarter ended April 29 of $394.2 million, up 3.3% on the previous corresponding period.
ASB economist Daniel Smith said fuel spending fell by 1% in April to $611 million, the fifth consecutive month of falling spending.
"Although the level of spending is falling from quite high levels reached in mid to late 2011, the fall has coincided with sharp increases in petrol prices."
Higher prices would usually imply an increase in the value of spending. However, fuel spending was still at a historically strong level and there was no firm evidence of a structural shift in driving patterns, he said.
Spending on services fell 0.4% to $168 million. Non-retail industries gained 0.5% to $1.18 billion.
Unadjusted total spending on electronic cards climbed 1.4% to $5.24 billion in April.
Credit card use as a proportion of total spending dropped to 42.9%, its smallest monthly proportion since September.
Statistics New Zealand's retail trade survey for the first three months of the year will be released today.
Mr Smith said although the household sector was recovering, and private demand was growing slowly, he did not see the sector as a source of inflationary pressure in the near term.
