November 21st, 2024
Spending in retail industries increased by 0.7% ($45 million) in March 2023 compared to February 2023, according to data published by Stats NZ on Wednesday. This growth was also reflected in the core retail industries, which saw a 0.5% ($32 million) increase in spending.
Retail spending categories on the rise
Stats NZ reports notable movements in several spending categories for March 2023:
Motor vehicles (excluding fuel): up $11 million (5.5%)
Fuel: up $7.3 million (1.3%)
Apparel: up $5.1 million (1.5%)
Durables: up $3.4 million (0.2%)
However, consumables experienced a decline in spending, dropping $32 million (1.2%).
A Year in review: electronic card transactions (2021-2023)
Stats NZ data shows a fluctuating trend in electronic card transactions across various industries from March 2021 to March 2023. The most significant growth was observed in December 2022, with a total transaction value of $10,433 million. Comparatively, August 2021 saw the lowest transaction value at $6,433 million.
March 2023: a month of increased transactions
In March 2023, electronic card transactions reached a total value of $9,455 million, showcasing an increase in spending compared to February 2023 ($8,381 million). The data provided by Stats NZ suggests that the retail industry played a significant role in driving this growth.
The increase in electronic card transactions for March 2023, as reported by Stats NZ, indicates a positive trend in consumer spending across various industries. This growth could potentially be a reflection of increased consumer confidence and a strengthening economy. However, it is essential to continue monitoring these trends to assess the long-term impact on New Zealand's economy and retail sector.
Looking at the above chart it is clear that following the decline in April 2020, there was a steady recovery in the subsequent months, with both actual and seasonally adjusted values showing an upward trend. By June 2020, the actual transactions had climbed back up to $5.70 billion, and the seasonally adjusted figures reached $6.10 billion. This recovery can be linked to the easing of lockdown restrictions and the gradual reopening of economies.
In general, the data shows a consistent growth in electronic card transactions over the years, with occasional fluctuations. The highest actual transactions were recorded in December 2022 at $8.15 billion, while the seasonally adjusted figures peaked in March 2023 at $6.68 billion. These spikes can be attributed to factors such as increased consumer spending during the holiday season and a general improvement in the economy over the years.