Spending on electronic cards rose strongly last month, led by the biggest monthly gain in hospitality expenditure since November as the sector continues to enjoy the benefits of an expanding population and booming tourism numbers.
Retail spending rose a seasonally adjusted 0.3 per cent in July, slowing from the 1.2 per cent increase in June, Statistics New Zealand said.
However, spending on hospitality was up 2.9 per cent in July, the largest area of increase. Spending on fuel dropped 3.6 per cent as cheap oil continues to reduce costs for motorists. Core retail spending, which excludes vehicle-related items, was up 0.7 per cent in the month.
"People spent more on accommodation and on food and drinks in restaurants and takeaway shops," said business indicators senior manager Neil Kelly. "In contrast, they spent less on fuel, with petrol prices falling about 10c a litre in July."
The hospitality sector has been reaping the benefits of New Zealand's prolonged tourism boom at the same time as record net migration numbers have boosted the population.
