Dec Positive but Kiwis Still Exercising Restraint

December Positive but Kiwis Still Exercising Restraint

The latest figures from Paymark show that whilst December 2009 showed an improvement in overall spending, Kiwis remain cautious in what is still a tight economic market.

The total value of transactions through the Paymark network accelerated in December to NZ$4.3 billion (3.9 percent higher than the same month in 2008), but take out petrol outlets, and sales are only up 2.6 percent for the same period.

Whilst this is still an improvement on growth in November, it is well below the double-digit growth rates that could be seen across parts of December 2006 and 2007.

In terms of volume, The Paymark network processed 80.7 million transactions in December 2009, an increase of 6.5 percent on December 2008.

Paymark spokesperson Paul Whiston says that overall, December was a good month that points towards an interesting 2010.

“As predicted, we saw some good growth in the late December rush again this year which is positive for retailers and New Zealanders in general,” says Paul Whiston.

The figures also point to a month of mixed spending, from which many typical seasonal discretionary spending trends are missing.

Jewellery shops, restaurants/cafes and hairdressing/beauty salons experienced the strongest growth (+9.3 percent, +8.0 percent and +7.5 percent respectively); however the typical December strongholds of hardware, DIY and camping/sporting outlets did not enjoy similar performance.

“Discretionary spending across our network was definitely a bit of a mixed bag – our figures show that spending on sporting and outdoor pursuits was lower than usual in December 2009, but the feel-good sector - cafes, jewellery and hair care were up,” says Paul Whiston.

On a regional basis, spending was up in each region, ranging from a slow 1.5 percent growth in Nelson to a relatively high growth of 7.1 percent in Gisborne.

Spending growth in the major centres of Auckland/Northland, Wellington and Canterbury tended to be near or below the national growth average.

“Overall,” says Paul Whiston, “December was promising in that our figures point towards the fact that we have continued out of the 2008 and early 2009 recession but it’s important to note that they also serve as a reminder of the tough economic conditions faced here and abroad”.

ENDS

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