New Zealand electronic card spending flat in October, trend remains positive

New Zealand retail spending on electronic cards was flat in October. However, this follows solid gains in recent months and leaves the level of spending up 5.6% over the past year. 

Looking at the breakdown, Core spending (which excludes the volatile fuel and automotive categories) was up 0.2% over the month, and is up a solid 7.6% over the past year. October saw continued gains in spending on consumables. There was some pullback in spending on durables and apparel, but this follows strong gains in recent months. 

"While high levels of migration and strong tourist demand continue to provide support, over the coming months we expect to see some softening in spending growth", says Westpac Research.

Employment growth has already slowed. In addition, the economy will face significant headwinds over the coming year from softness in global trade, drought, and the levelling off of the Canterbury rebuild.