Retail spending falls by $160 million in April after March fuel spike

Retail spending fell after spiking in March, with spending on services falling by 3%.

Kiwis spent less across all retail categories in April according to Stats NZ, with fuel spending dipping after a spike in March.

Spending in the retail industries decreased by $89 million or 1.3%, compared with a 0.7% increase in March, with spending in the core retail industries decreasing by $84m or 1.3%.

Breaking it down by category, consumables took the biggest financial hit with spending falling by $60m or 2.1%.

Spending in the hospitality industry fell by $19m or 1.3%, with spending on durables falling by $18m or 1.1%.

Despite a 17% or $81m increase in fuel spending in March, it fell by 2% or $11m in April, but remains elevated compared to the start of the year.

Spending on motor vehicles (excluding fuel) also fell, down $8.1m or 4.1%, while apparel spending fell by $4.1m or 1.3%.

The non-retail (excluding services) category, which includes medical and other healthcare, travel and tour arrangement, postal and courier delivery, and other non-retail industries, decreased by $94m or 4% in April.

The services category, which includes repair and maintenance, and personal care, funeral, and other personal services also fell, with spending down $12m or 3%.

The total value of electronic card spending, including the two non-retail categories, decreased from March 2026 by $160m or 1.6%.

In actual terms, cardholders made 168 million transactions across all industries in April 2026, with an average value of $55 per transaction.

The total amount spent using electronic cards was $9.2 billion.

Weaker than expected

Westpac senior economist Darren Gibbs said the outcome was much weaker than Westpac had expected.

“Despite a near 13% lift in petrol prices over the month, spending on fuel declined 2.0% month-on-month after a near 16% month-on-month increase in March,” Gibbs said.

“This suggests a decline in the volume of fuel purchases following some panic buying towards the end of March.”

Gibbs said the decline in retail fuel prices through May should have provided some relief to households, but that fuel prices will continue to siphon money out of households’ pockets.

He said Stats NZ’s retail trade survey for the March quarter will likely show a lift in retail spending, consistent with a lift in gross domestic product (GDP).

However, spending in the current quarter and second half of the year will depend on how the Middle East conflict evolves and how the Reserve Bank responds to the near-term spike in inflation.

“Signs of slowing activity in the housing market may weigh further on spending on durables over coming months.

“And over time, weak global consumer confidence and increased travel costs will also likely weigh on the strong growth in tourist arrivals that has helped the hospitality sector to weather a time of subdued domestic spending.”

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.

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