Subdued retail spending in February

Retail spending using electronic cards hit $4.8 billon in February 2017, up $121 million, or 2.6 percent, from February 2016, Statistics New Zealand said today. However, when adjusted for seasonal effects, retail spending fell 0.6 per cent in February 2017 compared to January. February 2016 had an extra day of trading, being a leap year. The decline follows an exceptionally strong January, where spending grew 2.7 per cent, the largest monthly increase since January 2006. “The fall in total card spending in February was driven by a lull in furniture, electronics, and department store purchases,” business indicators senior manager Neil Kelly said in a statement. Spending for vehicles using electronic cards was down 0.6 per cent to $163 million when seasonally adjusted, compared to the previous month. Fuel spending, however, rose 2.8 per cent to $657 million. The largest fall came from the durables industry, which includes furniture, hardware, electronics, recreational goods, department stores, and pharmaceutical and other transactions. The market fell 2.1 per cent to $1.2 billion. Trends for the total and retail values have been steadily rising since Statistics New Zealand began tracking data in October 2002.