Spending in the retail industry rose 1.4% or $95 million in February compared with January. Photo / 123rf
Spending in the retail industry rose 1.4% or $95 million in February compared with January. Photo / 123rf
Retail spending in February bounced back after a slow January, with almost every retail category seeing an increase in spending month on month according to new data from Stats NZ.
Spending in the retail industries in February 2026 grew by 1.4% or $95 million compared with January, with core industryspending lifting 1.6% or $103m month-on-month.
Westpac senior economist Satish Ranchhod said the data left a picture of firming consumer spending in the early part of this year.
“Stepping back from the month-to-month volatility in sales, the longer-term trend in retail spending was starting to look more positive in the early part of the year,” Ranchhod said.
“The combination of strong export commodity earnings and last year’s interest rate cuts helped to boost disposable incomes and spending appetites. That saw households dialling up their discretionary spending.”
Westpac Institutional Bank senior economist Satish Ranchhod has questioned whether stronger spending will last as the year progresses.
Breaking it down by category, spending on hospitality had the largest monthly increase, up 2.4% or $35m, with consumable spending growing by 1.8% or $49m.
Spending on durable items also grew, rising by 1.3% or $21m.
Apparel also reversed its decline for the first time in months, with spending lifting by 1.9% or $6.4m.
The non-retail (excluding services) category, which includes medical and other healthcare, travel, tour arrangements and postal and courier delivery, increased by 2.1% or $47m from January 2026.
In negative territory, Kiwis spent less on fuel, down 1.2% or $5.6m, while spending on motor vehicles (excluding fuel) was down 0.5% or $0.9m.
The services category, which includes repair and maintenance, personal care, funerals and other personal services, also had its spending decrease, down 0.5% or $1.8m.
The total value of card spending, including the two non-retail categories, grew by 1.1% or $109m from January 2026.
In actual terms, cardholders made 168 million transactions across all industries in February 2026, with an average value of $55 per transaction.
The total amount spent using electronic cards was $9.2 billion.
Ranchhod said the biggest question following the data’s release is how long the strength in spending will last.
“Since the start of the war in the Middle East, nationwide prices for 91 unleaded petrol have risen an average of 53c/litre – a rise of 22%. And the rise in the price of diesel has been even sharper.
“Those higher fuel prices will siphon money out of households’ pockets. At the same time, higher transport costs will add to costs of production for all manner of goods and services. Those cost increases are also likely to dent confidence.”
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter – your essential weekly round-up of all the business news you need.
