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Card Spending Weak As Economy Develops As RBNZ Expects

NEW ZEALAND

Card spending data showed a second consecutive month of falling expenditure and is pointing to a weak start to Q4 for retailers. October retail spending fell 0.7% m/m after -0.8% to be down 0.9% y/y. The total fell 0.3% after -0.2% for annual growth to be only 1% higher on a year ago down from 3%, weighed down by the retail sector. 3-month momentum is stagnating. Consumption is weak and the economy continues to develop as the RBNZ expects and so rates are likely on hold for now. Next meeting is November 29.

  • Services rose 0.5% and non-retail +0.2% m/m. Hospitality spending declined 2.3% y/y.
  • Spending on fuel and motor vehicles was positive in October but apparel, consumables and durables all fell.
NZ retail spending y/y%

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Card spending data showed a second consecutive month of falling expenditure and is pointing to a weak start to Q4 for retailers. October retail spending fell 0.7% m/m after -0.8% to be down 0.9% y/y. The total fell 0.3% after -0.2% for annual growth to be only 1% higher on a year ago down from 3%, weighed down by the retail sector. 3-month momentum is stagnating. Consumption is weak and the economy continues to develop as the RBNZ expects and so rates are likely on hold for now. Next meeting is November 29.

  • Services rose 0.5% and non-retail +0.2% m/m. Hospitality spending declined 2.3% y/y.
  • Spending on fuel and motor vehicles was positive in October but apparel, consumables and durables all fell.
NZ retail spending y/y%

Keep reading...Show less