October sees increase in housing-related spending

October sees increase in housing-related spending

Auckland, Tuesday 11th November 2014: October was an excellent month for retailers in New Zealand who sell building supplies, hardware, appliances and furniture according to Paymark’s latest figures.

Compared to October 2013, the sale of building supplies was up 16.5 per cent, furniture purchases up 15.4 per cent with appliance, hardware, home and decorating stores also experiencing strong growth.

Paymark’s Head of Sales & Marketing Paul Whiston says the housing-related growth was most noticeable in the Bay of Plenty, Canterbury, Waikato, Auckland and Northland.

Spending through the Paymark network was also up by 8 per cent compared to the same time last year.

‘The number of monthly card transactions was 8.2 per cent higher than last October and we’ve seen unprecedented growth in the use of contactless payments,’ says Whiston. ‘Paymark processed 700,000 contactless transactions in October 2013. This October we’ve processed three million contactless payments – a 300% increase.’

Other sectors to experience a growth in spending during October include accommodation, hospitality and takeaways. It wasn’t great news for clothing retailers however with spending down on this time last year.

With Christmas fast approaching, the increase in transactions may reflect some early Christmas shopping but it’s too early to see any marked trends. Traditionally, Paymark sees a substantial increase in spending through its network in December and early January.

Key statistics:
The number of monthly card transactions was 8.2 per cent higher than last October.
Credit card transactions increased by 19.2 per cent compared to October 2013.
Debit card growth for October reached a moderate 4.7 per cent.
Strong growth was seen in the accommodation sector, up 11.2 per cent on October 2013 and in hospitality, up 11.3 per cent.
Growth in spending at takeaway outlets increased by 14.6 per cent.
Regions that experienced slower growth during October included South Canterbury with growth of 0.9 per cent, Taranaki at 2.7 per cent, Gisborne at 3.7 per cent and Hawkes Bay at 3.1 per cent.

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