Spending on vehicles plunges

Retail card spending on vehicles suffered the lowest impact of lockdown in dollar terms than other industry groups, according to new figures from Stats NZ.

Spending on motor vehicles, but excluding fuel, dropped $117 million, or 79 per cent, in April when compared to the previous month.

While a significant fall was expected because the country was in a Covid-19 lockdown for nearly the whole of April, other industries saw many more millions wiped from their incomes.

Restrictions on non-essential travel for the month, as well as lower pump prices, saw the amount people splurged on fuel down $291m, or 60 per cent, when compared to March this year.

Retail card spending across the country overall fell more than $2.6 billion, or 47 per cent, over the same period as non-essential businesses were forced to temporarily close their doors.

“The record decline in spending was a direct result of businesses hibernating because of the Covid-19 lockdown,” Kathy Hicks, retail statistics manager, says.

“New Zealand was under the level four lockdown for all but the last three days of April.

“The $2.6 billion drop is the equivalent of each person in the country spending about $520 less in April than they did in March.”

April’s decline in spending is the largest fall in dollar terms and percentage change since the series began in 2002.

Furniture, hardware, and appliances – which are grouped as durables – led the retail industry falls in value, down more than $1b, or 72 per cent, from March this year.

Hospitality sales, including accommodation, cafes and restaurants, had the next largest fall, down $721m, or 93 per cent.

Movements for other industries saw apparel down $179m, or 83 per cent, and consumables suffered a drop of $275m, or 11 per cent.