Households spending less on cars

Reduced spending on second-hand cars has been a key factor in household saving climbing to $2.1 billion in the June quarter, according to Stats NZ.

The latest data reveals a sharp turnaround from the first quarter of 2022 when household saving, which is the difference between income and spending, fell to $230 million.

Paul Pascoe, national accounts institutional sector insights senior manager at Stats NZ, says households spent less in the June quarter, while also experiencing steady income growth. 

“The decrease in household spending partly reflected reduced purchases of durable goods, such as second-hand cars and electronics,” explains Pascoe, pictured.

Household incomes grew 1.6 per cent to $54.9b in the June quarter, with wage and salary increases the largest factor contributing to the rise. 

Increased government assistance, such as benefits and tax credits, and income of self-employed business owners and partnerships also played a crucial part.

Stats NZ says household saving has fluctuated in recent quarters as a result of economic volatility affected by Covid-19 disruptions, international supply-chain pressures, and other factors.