INDEPENDENT NEWS

Waikato Card Spending Down 18%

Published: Thu 14 Oct 2021 04:36 PM
Bank of New Zealand (BNZ) card spending data released today shows the COVID-19 Alert Level 3 lockdown in Waikato is impacting economic activity in the region.
BNZ Chief Economist, Paul Conway, says, “Waikato has seen a significant drop in card spending with the move to Alert Level Three across much of the region, falling 18 per cent below pre-lockdown levels in the seven days to Tuesday 12 October.
The decline is consistent with the changes seen in Auckland and Northland, both also at Alert Level 3, where spending is down 21% and 18% respectively compared to be before lockdown. Cumulatively, the reduced activity in the upper North Island means national spending has fallen 7% below pre-lockdown levels.
Conway says, “This will no doubt put pressure on local business, but overall, the impact of these declines would be far greater if it wasn’t for the rest of the country now spending at a rate four per cent higher compared to before the Delta lockdown.
“This is encouraging given the flow-on effects from the hard lockdown in Auckland, Northland, and Waikato, and not to mention the ongoing restraints on spending caused by the Level Two,” says Conway.Figure 1 - Indexed weekly BNZ card spend through the Delta lockdown
“Prior to the Delta lockdown, card spending in the Waikato made up nine per cent of total spending in New Zealand. However, Auckland made up 33 per cent of total card spending, meaning Alert Level Three restrictions in New Zealand’s largest city are still the biggest constraint on total spending.
“Although the drop in spending due to the Delta lockdown hasn’t been as severe as in our nationwide lockdown last year, we are starting to see some early signs that the recovery may not be as strong as in 2020.
“This is not just about recovering from the impacts of the Delta lockdown. Consumer spending usually increases strongly from this time of year in the run up to Christmas. With uncertainty around the spread of Delta and its impacts, economic activity over the festive season could prove disappointing for some,” says Conway.
BNZ
Be good with money
Bank of New Zealand (BNZ) has been a big part of New Zealand life for over 150 years since its foundation in 1861. The bank employs over 5,000 people and has more than 170 retail stores and 32 Partners business centres across the country.
Passionate about enabling a higher achieving New Zealand, BNZ works with personal, business, agri, and private wealth clients, helping them grow and make their goals a reality.
A subsidiary of the National Australia Bank Group of companies, BNZ is governed locally by a Board of Directors and strives to help New Zealanders be good with money.
Contact BNZ Weekly
Website:
Phone:
0800 275 269
Twitter:

Next in Business, Science, and Tech

New Law On Decommissioning Could Be Costly Overkill
By: Energy Resources Aotearoa
News Publishers’ Association Seeks Authorisation And Provisional Authorisation To Engage In Collective Bargaining
By: Commerce Commission
MPC Continues To Reduce Monetary Stimulus
By: Reserve Bank
Almost Two-fifths Of New Zealanders Don’t Feel Safe Enough To Shop In-store This Black Friday
By: PriceSpy
NZ Skeptics Announce Their 2021 Awards, And Dr Simon Thornley Wins The Bent Spoon
By: NZ Skeptics Society
Sales Volumes Leveling Out
By: REINZ
Auckland Retail Card Spending Bounces Back In Step Two
By: BNZ
View as: DESKTOP | MOBILE © Scoop Media