New Zealand retail spending on electronic cards was flat in September, which economists said was due to cooling house prices.
Seasonally adjusted retail spending on credit and debit cards rose 0.1 per cent from August, having dropped 0.2 per cent that month, Statistics New Zealand said in a statement. Total spending, including non-retail industries, fell 0.1 per cent, having risen 0.6 per cent a month earlier.
"Consumer spending has cooled significantly in recent months - in fact, the level of card spending is down since the start of the year," said Westpac chief economist Michael Gordon.
"Consumer spending in New Zealand tends to have a strong link with the housing market, and the slowdown in spending is consistent with the cooling in house prices over the last year. In the absence of a renewed fall in interest rates, we expect the housing market, and therefore growth in consumer spending, to remain subdued over the next couple of years."
Statistics NZ retail manager Sue Chapman said the agency was unable to draw "any firm conclusions about the impact of the general election on electronic card spending in September."