New Zealanders have spent $2.7 billion on retail in the month of June, a one percent increase on spending from last year.
Data from eftpos and transactional service company Wordline show Kiwis spent $2.76 billion, but the rate of spending growth is below the reported annual inflation rate of 6.9 percent.
“With spending lifting only marginally above year-ago levels while inflation is running somewhat high suggests people are having to cut back on the amount they purchase,” says Worldline Head of Data George Putnam.
“Our data suggest this is happening to a degree across all sectors, but it has been enough to push spending significantly below year-ago levels in some merchant sectors.”
Spending in the hospitality sector reached $881 million in June, up 5.2 percent from pre-Covid levels of June 2019, however this is still 3.1 percent below June 2021.
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“It’s encouraging to see spending within the hospitality sector continue to recover gradually, especially in surpassing pre-Covid levels in May and June 2022 – and following the previous tough nine months that began with level 4 lockdowns in August 2021,” adds Putnam.
With the addition of the new long weekend in June for Matariki, the hospitality sector saw a boost for regional cafes, restaurants, hotels and motels, with $112 million spent over that period.
Over the long weekend, spending saw an increase of 0.9 percent from the same weekend of 2021 and a 12.8 percent increase from 2019.
Outside the bigger cities, smaller towns experienced the best of the long weekend, with regional hospitality providers seeing an extra 6.5 percent spend, while Auckland and Canterbury saw low spending over the Matariki weekend.
“Mid-winter clearly did not deter New Zealanders from getting out of the cities to enjoy the first of the Matariki holidays,” says Putnam.
For the hardware and furniture category, the cost spent by Kiwis has gone down 5.5 percent from June 2021 to June 2022.
Auckland saw the highest spend across the country with Kiwis spending over $1 billion on retail in the month of June.
This is followed by Canterbury which saw a monthly spend of $334 million and Wellington with $268 million.