Easing petrol prices gave Kiwis more to spend at bars and restaurants. Photo/Getty Images.
Easing petrol prices gave Kiwis more to spend at bars and restaurants. Photo/Getty Images.
Kiwis made big savings on fuel in November and many of us headed straight off to the pub - or the mall.
The biggest monthly drop in fuel spending in a decade coincided with people spending more at department stores, bars, cafés, and restaurants, Stats NZ said today.
Card spendingon fuel was down 7.2 per cent when compared with October 2018.
"Spending on fuel was $625 million, the lowest monthly total since October 2017," retail statistics manager Sue Chapman said.
"During November, average fuel prices had dropped around 20 cents a litre. This made pump prices the lowest they had been since October 2017."
Meanwhile seasonally adjusted spending on hospitality rose by 1.3 per cent ($14 million) and consumer durables rose by 0.8 per cent ($11 million).
Overall retail card spending fell 0.4 per cent in November, dampened by the fuel price-related decline.
But core electronic card spending rose 0.5 per cent month on month, as lower petrol prices freed up additional discretionary cash-flow, ASB economist Mark Smith said.
He noted that the Black Friday sales also appeared to have boosted apparel and durable retail, with hospitality having a good November month.
The crude oil price surged so much this year it sparked fears about petrol heading towards $3 a litre. Then it crashed so hard we are now more likely to see it below $2 a litre by Christmas.
Oil prices peaked in early October, which coincided with a fall in the kiwi dollar and new fuel taxes to hit drivers in the pocket.
But in a dramatic market shift - which caught many traders off guard - oil prices have slumped in the past two months.
They have fallen as much as one third since a peak on October 3.
The kiwi dollar has also bounced back - up about 7 per cent since the start of October
