Card spending shows sharp rise

Retail spending using electronic cards was at its highest monthly level in almost two-and-a-half-years during March, as petrol prices climbed to a 17-month high.

Total spending charged to credit or debit cards edged 1.2 per cent per cent ahead on the previous year, with retail spending (up 2.1 per cent) driving the increase the monthly and yearly increases, Statistics New Zealand said.

Spending on food, liquor furniture, hardware and appliances also shot up during March.

Core retail spending, which excludes the motor vehicle-related industries, increased 2.2 per cent compared with the same time last year, the biggest increase since November 2004.

Meanwhile the non-retail industries fell 0.2 per cent during the same period.

The value of transactions in the core retail, retail and total transactions have been increasing since January 2009, although at different rates.

Latest figures indicate the monthly growth rate has been increasing since October 2009.

ANZ economist Mark Smith said the results were encouraging.

"Today's outturn suggests tentative signs of recovery in retail spending but we will need to see more evidence that households are willing (and able to) continue spending to be convinced this is the start of a new trend."