New high for vehicle spending

Post-lockdown retail card spending on vehicles has increased for the third consecutive month and hit a new high of $222 million, according to Stats NZ.

The amount spent by consumers on vehicles in July 2020 was up from $215m the previous month and beat the $180m splashed out in May. Spending crashed to a record low of $29m in April because of restrictions in place to limit the spread of Covid-19.

Last month’s figures also represented an increase of $38m, or 21 per cent, from the $184m spent in July 2019.

It was the second consecutive month of year-on-year growth, after numbers were up $45m, or 26 per cent, in June following three months of decreases in consumer spending.

The surge for vehicle sales helped contribute to a rise in overall retail card spending to $6 billion in July, up $610m, or 11 per cent, from the same month in 2019.

Spending on durables had the largest retail industry increase in actual terms for July, climbing $259m, or 20 per cent, compared with the same month of 2019.

The second biggest jump was in the consumables industry – supermarkets, specialised foods and liquor stores. This sector saw spending increase $245m, or 12 per cent, over the same period.

Kathy Hicks, retail statistics manager, says: “For a third consecutive month, card spending on the long-lasting goods – durables – remained at higher levels than last year, after falling sharply during April’s Covid-19 lockdown when stores were shut.

“Continued card spending in July coincides with New Zealand being in alert level one for a full month, with few restrictions compared with level four lockdown in April.”

Fuel was the only one of the six retail industries studied to experience a fall in July, with the monthly spend of $518m representing a drop of $44m, or 7.9 per cent, from July 2019.

Stats NZ data shows weekly traffic counts were recovering in July. “The lower fuel sales may partially reflect a lower price at the pump compared with the same time last year,” Hicks explains.

The total value of electronic card spending in July, including the two non-retail categories of services and other non-retail, rose $474m, or 6.3 per cent.

Cardholders made 160 million transactions across all industries in July 2020, with an average value of $50 per transaction. The total amount spent using electronic cards was $8b.

In seasonally adjusted terms, retail card spending in July 2020 was up $72m, or 1.2 per cent, compared with June 2020.

Vehicle spending stats

Electronic card transactions for the vehicle industry (excl. fuel) – actual monthly values inc GST

2018
Jul – $177m
Aug – $178m
Sep – $169m
Oct – $177m
Nov – $185m
Dec – $190m

2019
Jan – $178m
Feb – $170m
Mar – $186m
Apr – $167m
May – $185m
Jun – $170m
Jul – $184m
Aug – $189m
Sep – $179m
Oct – $187m
Nov – $194m
Dec – $199m

2020
Jan – $186m
Feb – $181m
Mar – $153m
Apr – $29m
May – $180m
Jun – $215m
Jul – $222m