Strong Annual Growth Continues Into 2014 … But it’s Patchy

Strong Annual Growth Continues Into 2014 … But it’s Patchy

Auckland, Monday 10 February 2014; Spending across the first month of 2014 can be best described as positive but patchy according to the latest figures from New Zealand’s leading payments provider, Paymark.

Paymark’s data highlight that while the total value of January spending through its network was up 7.9 per cent, there are some mixed trends and also a hint that some of the momentum may be waning.

Mark Spicer, Head of Customer Relations at Paymark, says, “After a big finish in 2013, it’s good to see that some regions and retailers are continuing to feel the momentum associated with the general economic recovery.

“The food and hospitality sectors in particular continue to experience strong spending growth but sectors including clothing and department stores and regions like Wellington and Wanganui continue to lag,” adds Spicer.

Our more buoyant holiday mood and an increase in international tourist numbers pushed the year-on-year growth rate for accommodation and hospitality providers up to 12.8 per cent during January. Food and beverage outlets also enjoyed continued spending growth with sales through Paymark up 8.4 per cent.

Petrol outlets, tyre companies and automotive parts shops benefitted from a strong summer, up 11.3 per cent, 8.9 per cent and 9.1 per cent respectively.

Housing-related spending growth remained high through furniture and homeware shops, up 10.9 per cent year-on-year.

But a hint of a change in this part of the retail sector can be seen from the annual growth in spending through hardware stores recording only 4.7 per cent, well below the annual growth rate averaged since early 2012 of 9.9 per cent.

January’s hotspots for growth in the total value of transactions included Marlborough (+ 11.1 per cent), Palmerston North (+9.9 per cent) and Canterbury (+9.4 per cent).

Regionally, Wellington and Wanganui experienced the slowest growth in terms of the value of transactions, recording modest annual shifts of 2.8 per cent and 2.4 per cent respectively.

When looking at the split of how Kiwis paid for goods and services during January (credit card vs. debit card) Paymark’s data showed that spending on credit cards outstripped debit cards with total transactions for each payment type at +15.5 per cent and +4.0 per cent, year-on-year, respectively.

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