NZ: Retail spending on electronic cards increased 0.7% in July - ANZ

Sandeep Kanihama FXStreet Contributor

Kyle Uerata, Economic Statistician at ANZ, notes that New Zealand’s retail spending on electronic cards increased 0.7% m/m in July (seasonally adjusted), following a 0.8% m/m lift in June.

Key Quotes

“Fuel spending rose 2.1%, likely reflecting higher prices at the pump in Auckland after the introduction of the regional fuel tax.”

“‘Core’ retail spending, which strips out motor vehicle-related spending, posted a seasonally adjusted 0.3% m/m rise – in line with its 12-month average.”

“In trend terms, monthly growth in core spending continues to track sideways (0.2% m/m).”

“Looking through the impact of higher petrol prices and volatility in fuel spending, we’re left with a pretty modest picture for consumer spending.”

“On the back of a weak cards spending in Q2, the lack of a strengthening underlying picture is a bit of a concern, but it’s still early days in terms of Q3, and cards transactions are far from a perfect indictor for GDP consumption expenditure.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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