New Zealanders increased their spending on credit and debit cards in August, with a pick-up in the hospitality sector driving core retail expenditure in the month.
The value of core retail sales on electronic cards, which strips out spending on fuel and vehicle related items, rose 0.6 per cent to a seasonally adjusted $3.78 billion in August, adding to the 0.6 per cent increase a month earlier, Statistics New Zealand said. Including fuel and vehicle spending, total retail spending rose 0.5 per cent to $4.69 billion.
Credit and debit card spending on hospitality rose 1.3 per cent to $743 million in the month, while spending on consumable goods such as food and liquor rose 0.6 per cent to $1.63 billion. Spending on durable items edged up 0.1 per cent to $1.11 billion, while apparel spending fell 0.4 per cent to $289 million.
Last month government figures showed retail sales for the June quarter rose 1.2 per cent, beating estimates, as both values and volumes rose at the fastest pace in two years. An upbeat economic outlook has bolstered household confidence, though increased activity hasn't yet led to rising consumer prices, with the pace of inflation tamer than the Reserve Bank's expectations.
Today's figures showed unadjusted core retail sales were up 4.5 per cent at $3.62 billion from August 2013, with hospitality showing the biggest gain, up 11 per cent at $734 million from a year earlier. Spending on consumable goods was up 4.9 per cent at $1.62 billion from a year earlier. Total retail sales rose 4.1 per cent to $4.5 billion, while all spending, including services and non-retail industries, was up 3.2 per cent at $6 billion.
