Non-retail industries include travel agencies and tour arrangement services, health and pharmaceuticals, wholesaling, and other industries.
Seasonally-adjusted retail spending across the full March 2023 quarter increased by $227m (1.2 per cent), while the total spending increased by $401m (1.7 per cent) from the December 2022 quarter.
The largest increase in the retail industries was seen in the groceries and liquor spending category, up $146m (1.9 per cent). It was partly offset by a fall in fuel spending, down $147m (8.1 per cent).
“The rise in total card spending during both the March quarter and March month was largely attributed to a lift in spending within the non-retail industries,” Ho said.
Actual retail card spending was $19 billion in the March 2023 quarter, up 9.7 per cent from the March 2022 quarter.
Spending on hospitality had the largest increase, up $933m (32.3 per cent) compared with the March 2022 quarter.
Values are only available at the national level and are not adjusted for price changes.
Electronic card transaction data covers the use of credit and debit cards in shops or online and includes both the retail and services industries.
Westpac senior economist Michael Gordon noted that retail spending had held up well, roughly in line with expectations.
“However, we expect it to slow in the months ahead as more households roll onto substantially higher mortgage rates,” he said.
ASB economist Kim Mundy described it as “a broad-based rebound” with evidence of repairing and restocking activity underway after the recent cyclone.
But that storm-related spending was likely to be shortlived, she said.
“Headwinds to consumer spending are building and should take some heat out of the numbers,” she said.
Meanwhile, Kiwibank’s Household Spending Tracker contracted 9 per cent in the March quarter.
The Household Spending Tracker is a measure of activity through Kiwibank-issued debit and credit card cards.
Over the December quarter, spending on all things food, retail and travel lifted 7.7 per cent, Kiwibank economists said.
Spending contracted in January and February, bringing down the entire quarter. The spending, however, began to rebound in March.
Both the value and volume of spending were sitting above pre-Covid levels.
Historically-low levels of unemployment continued to support households’ income, and in turn, consumption - although a growing Kiwibank customer base and a stronger preference for contactless payments in the Covid era might also explain today’s inflated spending levels, they said.
