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Vehicle spending jumps $14m

Automotive industry provides rare highlight as the overall value of transactions stays flat in January.
Posted on 12 February, 2021
Vehicle spending jumps $14m

Spending on vehicles increased by $14 million to $200m in January 2021 when compared to the same month a year earlier, according to new figures from Stats NZ.

The 7.5 per cent jump in the value of electronic card transactions came as the sector entered the new year on an upbeat note.

When adjusted for seasonal effects, card spending on motor vehicles in January was also up $3m, or 1.5 per cent, from the $197m that was splashed out in December 2020.

However, the monthly total was well below the peak of $222m that was hit in June 2020.

The vehicles and durables sector were the only two of the six retail industries studied by Stats NZ to see an increase in the value of card transactions between December and January.

Seasonally adjusted figures for overall retail card spending in January 2021 fell $24m, or 0.4 per cent, to just under $6 billion from December 2020.

In actual terms, the hospitality industry saw the largest drop in card spending of the industries and was down $60m, or 4.9 per cent, last month when compared with January 2020.

Sue Chapman, business insights manager, says: “The lack of international tourism is still hitting spending at hotels and motels, but spending is up slightly for eating out.

“The actual level of card spending showed the typical seasonal peak for the Christmas shopping period in December. However, spending in January was flat after adjusting for seasonal effects.”

The value of transactions for fuel fell $1m, or 0.2 per cent, to $514m in January when compared to the amount spent in the last month of 2020.