NZ retail card spending: A weaker result than expected - Westpac

In the view of Satish Ranchhod, Senior Economist at Westpac, “retail spending fell 0.6% in October, a weaker result than we had expected. Today’s result follows strong gains in the past two months. Spending levels remain well up on those seen through the first half of the year.”

Key Quotes:

“Households wallets and purses snapped closed in October, with retail spending levels down 0.6% over the month. That was weaker than we or analysts more generally had expected.

Looking back over the past year, retail spending levels are 1.6% higher than they were this time last year.

October’s pullback in spending was seen in a number of categories including consumables like groceries, durable household items like furnishings, and apparel. That saw core (ex-fuel and motor vehicle spending) dropping by 0.6% over the month.

But before we get too downbeat about today’s result, we should put it in context. October’s pullback follows solid gains over the past two months. And even with this latest moderation, retail spending levels are still running well above the levels that prevailed through the first half of this year.

We expect that spending growth will continue to climb through the remainder of 2019 and into 2020, supported by the firming in the housing market and wage growth. However, today’s result indicates that the pace of such increases may still be moderate.

Today’s result likely comes too late to affect the RBNZ’s deliberations ahead of Wednesday’s Official Cash Rate decision.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD hits highest since March amid US protests, European reopening

EUR/USD has jumped above 1.1150, trading at the highest since March. Protests in the US are grabbing the headlines and marginally supporting the dollar. European countries continue reopening their economies amid falling coronavirus statistics. 


GBP/USD resumes rally amid Brexit optimism, dollar weakness

GBP/USD is trading above 1.2550, extending its gains. Reports about British readiness to compromise in Brexit talks, conditioned on EU concessions, is helping boost the pound. US protests are eyed.


Bitcoin is three steps away from $14000

Bitcoin joins the list of bullish breakouts and leaves the relative highs at $14000 as a clear target in the short term. Ethereum continues to gain market share and sets the price level of $300 as a goal in the short term.

Read more

Gold trades with modest losses around $1735 level, downside seems limited

Gold traded with a mild negative bias through the early European session and was last seen hovering near the lower end of its daily range, around the $1735 region.

Gold News

WTI sits at three-month highs near $36.50 ahead of Russia’s decision, API

WTI (July futures on Nymex) broke its bullish consolidative phase to the upside in the European session and clinched fresh three-month highs at 36.48.

Oil News