New data from Bank of New Zealand (BNZ) shows card spending in Auckland has risen 28 per cent in the first full week of
COVID-19 Alert Level 3, to Tuesday 28 September. Nationwide, total card spending has rebounded to just five per cent
below pre-lockdown levels.
BNZ Chief Economist, Paul Conway, says, “The move down to Alert Level 3 in Auckland has seen a big uptick in spending in
the city, as people enjoy more freedoms and more businesses are able to operate, rebounding by 28 per cent. This however
is still 22 per cent below pre-lockdown levels for the city.
“Outside of Auckland, card spending has rebounded with the move to Alert Level 2 by a massive 57 per cent. This has been
driven by a strong surge in face-to-face transactions, buoyed along by the increased freedoms of Alert Level 2. This has
almost entirely offset the lower spending in Auckland, with nationwide card spending levels now sitting just five per
cent below pre-lockdown levels,” says Conway.
“Online spending has increased compared to pre-lockdown levels too, rising from 23 per cent of transactions to 28 per
cent now. Just how durable this is will remain to be seen as Auckland is able to get to lower Alert Levels, but so far
shows the importance of businesses having a strong digital operation to match rising digital consumer demand.
Conway says the data is showing very encouraging signs, with spending continuing to rebound.
“It’s clear that lowering the Alert Level sends a spending pulse through the economy, and this is particularly true of
Alert Level 2. The experience outside of Auckland suggests another strong pulse will hit the economy when the city
manages to join the rest of the country at Alert Level 2, though the full impact remains to be seen,” says Conway.