Consumers reluctant to hit the shops

Recovery in consumer spending faltered last month, electronic card transactions indicate.

In the retail sector, card transactions were down 0.2 per cent by value on September, seasonally adjusted, following month-on-month rises of 0.7, 0.5 and 0.7 per cent in the three preceding months.

Last month's transactions were 0.3 per cent lower than in October last year, the height of the international financial crisis.

In the core retail sector card transactions fell 0.4 per cent, reversing September's rise, to be 1.7 per cent higher than a year ago.

Statistics New Zealand estimates 61 per cent of retail sales are captured by the card transactions data.

Deutsche Bank chief economist Darren Gibbs said the figures were disappointing.

"We are conscious the recovery in consumer confidence and house prices remains quite recent and it still seems quite likely we will see a more consistent strengthening in spending going into Christmas."