New Zealand data – November retail sales indicator slumps even lower

New Zealand Card Retail Sales – for purchases made in New Zealand on debit, credit and store cards.

In November -2.3% y/y

• prior -1.1%

For the mm/m, no change (ie 0% m/m)

• prior revised to +0.7% m/m (from +0.6)

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Card spending data covers around 68% of core retail sales in NZ. Its used as the main retail sales indicator for the country.

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The previous report, for October 2024, showed New Zealand’s electronic card retail spending increased by 0.6% compared to September, marking the third consecutive monthly rise. However, on a year-over-year basis, retail card spending declined by 1.1%, an improvement from the 5.6% decrease observed in September.

The uptick in spending was attributed to economic stimuli, including tax cuts implemented in late July and the Reserve Bank of New Zealand’s initiation of a rate-cutting cycle in August. These measures have bolstered consumer spending appetites, particularly in discretionary areas such as dining out and durable goods.

Despite these positive trends, challenges persist. The labour market has softened, with unemployment rising to 4.8%, and population growth has slowed due to decreased net migration. These factors may temper the pace of retail spending recovery in the coming months, like it did in the November figures just out.

This article was written by Eamonn Sheridan at www.forexlive.com.