New Zealanders continued to rein in spending during June, with new electronic card transaction data showing a decline in retail activity as households remained cautious amid ongoing cost-of-living pressures.
Figures released by Stats NZ show the total value of electronic card spending, including retail and non-retail categories, fell by $116 million, or 1.2 percent, compared with May on a seasonally adjusted basis.
The decline was driven by weaker spending across several retail sectors, including hospitality, apparel, fuel and durable goods, suggesting consumers are continuing to prioritise essential purchases over discretionary spending.
While services spending recorded a modest increase during the month, it was not enough to offset broader declines across the retail economy. In total, New Zealanders made around 166 million electronic card transactions during June, spending approximately $9.1 billion, with the average transaction valued at $55.
Economists say the figures reflect continued pressure on household budgets as many families contend with higher mortgage repayments, rents, insurance costs and everyday living expenses.
The latest data follows a series of indicators pointing to subdued consumer confidence, with many households choosing to reduce discretionary spending while focusing on essential costs and debt repayment.
Retailers are also feeling the effects, with softer consumer demand continuing to challenge businesses across a range of sectors despite signs that inflation has eased from recent highs.
Although quarterly spending remains slightly above earlier levels, analysts say a sustained recovery in consumer spending is likely to depend on stronger household confidence, improving wage growth and lower borrowing costs.
Electronic card transaction data is widely used as an early indicator of consumer spending and broader economic activity, providing one of the first monthly snapshots of how households are responding to changing economic conditions.
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