Spending slows on cards

Spending on electronic transactions was subdued at the start of winter, with spending slowing down ahead of the Government's budget and amid concerns about world financial markets, Paymark said today.

Spending grew 1.3 percent in May compared with a year earlier, slowing down towards the end of the month as the weather deteriorated, Paymark said.

The volume of transactions processed through the Paymark network was up 3 percent, below growth rates seen during the recession of 2008.

``Rain was just one part of the puzzle for retailers last month. For most people, money is still tight and there may have been some restraint in advance of the Budget,' Paymark chief executive Simon Tong said.

``Whatever the reasons, similar to the pattern of recent months our network is seeing subdued spending, a trend which suggests continued cautious sales forecasting for retailers,'

Spending on liquor and recreational goods was down 8 percent and 5 percent respectively. However, spending increased on footwear, up 21 percent; takeaway food, up 7 percent; cafes and restaurants, up 6 percent; and furniture, up 6 percent.

Regions to see spending decline were Nelson, Marlborough and Canterbury, while Waikato, Bay of Plenty and Gisborne showed the fastest growth rates.

Official data also showed spending had slowed, with April retail sales falling by 0.3 percent compared with March, which had recorded a 0.5 percent monthly rise, according to the latest Statistics New Zealand figures.

- NZPA