January retail spending in Hawke's Bay tops country for second month in a row

Hawke's Bay growth in retail spending has topped the nation for the second month in a row.

Hawke's Bay's retail spending growth has easily topped the country in January for the second month in a row.

Paymark figures show for the month of January Hawke's Bay enjoyed an 11.1 per cent increase in value over the same period last year, with the number of transactions increasing 12.2 per cent.

Behind Hawke's Bay was Bay of Plenty on 10.4 per cent, Otago on 8.9 per cent and Palmerston North on 8 per cent.

The national increase was 6.1 per cent, compared with a 6.7 per cent average for 2016.

December spending was up 10.9 per cent on December 2015, ahead of Bay of Plenty on 9.9 per cent and Otago on 9.5 per cent. The national increase was 6.6 per cent.

Leading the December Hawke's Bay charge, with a 20.8 per cent increase, was the region's accommodation sector, followed by food and beverage on 16.1 per cent and electrical and electronic retailing at 12.6 per cent, but all sectors reported strong earnings.

Economic development agency Business Hawke's Bay chief executive Susan White said it was "awesome" to see the positive sign within the Hawke's Bay market.

"The Paymark statistics show that both the value and volume of transactions has increased - they back up what we anecdotally can see when we visit bustling cafes and attend well-supported events and attractions, especially over the summer," she said.

"It would be great to see growth sustained throughout the year beyond the summer months. That may well be possible given that tourism is a key economic driver for New Zealand, and Hawke's Bay is a strong tourism destination."

A Paymark statement said the annual growth rate across all sectors dipped below the average of 2016 in January, the result of changing days within months rather than a fundamental slowdown in spending growth.

"In the last five years, the combination of a stronger housing market, strong tourism, relatively low oil prices and strong uptake of contactless cards has tended to support stronger spending through the Paymark network. This year started with three out of the four driving forces intact."

The rising price of petrol was a noticeable trend.

"This showed in Paymark figures in January as a 1.7 per cent seasonally adjusted increase in spending through fuel retailers. Noticeably the annual growth rate for the sector at 6.3 per cent was the fastest recorded in 35 months amongst these merchants.

"This rise in fuel prices does not appear to have dampened spending elsewhere to date, given that underlying spending excluding fuel also increased a strong 1.7 per cent in seasonally adjusted terms over January."