Vehicle spending bounces back

Card spending on vehicles bounced back in May to nearly the same amount seen splashed out by consumers a year ago, according to new figures from Stats NZ.

The actual value of retail electronic card transactions for motor vehicles – excluding fuel – was down $5.2 million, or 2.8 per cent, to $180m last month when compared to May 2019.

Spending on fuel plunged $210m, or 35 per cent, to $394m in the same period.

When adjusted for seasonal effects, spending on vehicles was $183m in May, up from $182m in the same month a year ago.

The figures are in sharp contrast to April this year when the impacts of the coronavirus lockdown saw only $29m spent on motor vehicles.  

Businesses reopened as New Zealand moved to Covid-19 alert level three near the end of April and then to level two halfway through May.

Overall, spending in the retail industries in May 2020 fell $332m, or six per cent, compared to the same month a year earlier. 

Other industries suffering drops year-on-year included apparel and hospitality, with declines of $68m, or 21 percent, and $428m, or 41 per cent, respectively.

Meanwhile, the actual value of card spending on consumables climbed $254m, or 12 per cent, and durables $122m, or 9.3 per cent in the same time frame.

Cardholders made 116 million transactions across all industries in May 2020, with an average value of $58 per transaction. The total amount spent using electronic cards was $6.7 billion.

In seasonally adjusted terms, retail card spending last month was up $2.3b, or 79 per cent, compared to April 2020.