Electronic card transactions slump

Photo / Martin Sykes

Transactions made using electronic cards slumped in April, reversing most of the gains from a strong rise in March.

Figures from Statistics New Zealand (SNZ) today show total electronic card transactions fell a seasonally adjusted 1 per cent last month.

Non-retail industries, including services such as travel and health, edged up 0.2 per cent while retail industries fell 1.7 per cent.

Core retail sales, which exclude vehicle-related industries, recorded a fall of 1.9 per cent. The main contributors to the decline were durables such as furniture, hardware and appliances, and consumables such as food, liquor and chemist shop sales.

In comparison with the April figures, March data showed a 1 per cent rise in total transactions, and 2 per cent rises for both retailing and core retailing.

SNZ said seasonal adjustment reflected short term behaviour and had been influenced by increased variability in spending patterns in recent months.

Electronic card transactions were worth a total of $4.76 billion in April, up 4.1 per cent from a year earlier.

Goldman Sachs JBWere economist Philip Borkin said some form of reversal had been expected last month, given the strong rises in March, but the fall in April was larger than envisaged.

While Easter appeared to be a factor in recent volatility in card transaction figures, consumers also appeared to have become more discerning about spending their marginal dollars, targeting periods of more aggressive discounting by retailers, Borkin said.

"While recent data has obviously been volatile, it is clear that the consumer remains relatively cautious, with confidence for the future currently failing to flow through into willingness to spend."

- NZPA