While retail volumes in NZ rise 5.3% spending drops 0.6%

The stir around ubiquitous slowdown make consumers tighten their belts and spend less but their decision to save more is unlikely to produce good fruits as long as saving puts the economy to sleep. New Zealand reported lowered card retail spending for the third month in row in January. Electronic card transactions including, those on debit, credit and charge cards use at POS, revealed that retail spending decreased 0.6% against the preceding month.

Electronic transactions for basic retail groups, excluding motor vehicle-related industries, dropped by a seasonally adjusted 0.2%. Overall seasonally adjusted electronic card spending, which includes transactions in industries other than retail, remained flat. Unadjusted retail volumes, which take into account price movements but not seasonal factors, increased by 5.3% above the previous year which was the biggest annual gain in four months.

Experts except New Zealand economy to weaken further in light of decline in consumer spending, cut investments by the businesses as well as weak global markets and prices hit exports.