KEY POINTS:
New Zealanders' use of credit and other cards rose to a record high in January, showing ongoing strength in household spending and cementing the chance of a rate hike in March, an economist said.
Total electronic card transactions (ECTs) - including those by visitors but excluding New Zealanders travelling overseas - rose 0.4 per cent in value last month to $4.49 billion, seasonally adjusted, Statistics New Zealand said.
Volumes fell to 76 million, unadjusted, from 88 million in December, but up 9.2 per cent on a year earlier.
ECTs account for 57 per cent of total retail spending, and have risen from $2.9 billion in October 2002. The data is part of an experimental series, although economist Shamubeel Eaqub of Goldman Sachs JBWere said it correlated with real retail sales.
"The ECT data shows ongoing resilience in retail spending since a trough in July 2006 and perhaps signs of recovery," Mr Eaqub said.
"Given the RBNZ's (Reserve Bank of NZ) hawkish bias and particular focus on the household sector, this piece of data is likely to add to the RBNZ's case to hike."
The Reserve Bank collates its own data on credit cards alone, which appeared to be roughly half of January's total ECTs. Last month's credit card spending was $2.29 billion, according to the bank.
- NZPA
