Card transactions confirm Rugby World Cup spend-up

Rugby World Cup merchandise helped boost consumer spending for September and October. Photo / Paul Estcourt

A boost to retail spending last month from the Rugby World Cup is showing up in electronic card transaction data released yesterday.

Retail spending on cards was up 1.5 per cent, seasonally adjusted, on September, which in turn was up 0.7 per cent on August.

Most of the increase was spending on fuel and apparel, up 4 per cent and 4.8 per cent respectively, aided by campervans and supporters' gear.

Spending on big-ticket items held up. Consumer durables rose 0.5 per cent in October and 5.1 per cent for the year; vehicles were up 0.8 per cent in the month and 7 per cent for the year.

Hospitality spending rose just $3 million or 0.6 per cent last month, but that was on top of a 1.2 per cent rise in September.

"This may be due to the fact electronic card transaction data do not capture cash sales, so may be underestimating the amount of Rugby World Cup-related spending taking place," ASB economist Christina Leung said.

On an annual basis, hospitality spending was up 10.7 per cent; it has been recording double-digit annual growth since July.

With the World Cup behind us, Leung expects the recovery in retail spending to be gradual, reflecting the continued caution among households.

Goldman Sachs economist Philip Borkin said Paymark had provided some more colour on the composition of spending in October.

"Large increases were recorded for cafes and restaurants (up 12 per cent year on year) and bars and clubs (up 11 per cent), indicating a clear impact from the Rugby World Cup."