Quiet quarter in retail card spending

Retail card spending was quiet in the December 2018 quarter, Stats NZ said today.

When adjusted for seasonal effects, retail card spending was down 0.2 percent in the December 2018 quarter. This followed a 2.1 percent rise in the September 2018 quarter.

“The dip in the December 2018 quarter came after a strong September quarter,” retail statistics manager Sue Chapman said.

Spending rose in four of the six retail industries. The largest movement was in the fuel industry, down $92 million (4.7 percent). This was followed by the food and liquor retailing or ‘consumables’ industry, up $62 million (1.0 percent).

“The fall in the fuel industry coincided with petrol prices falling from record highs,” Ms Chapman said. “By the end of the December quarter, petrol prices had come down nearly 40 cents a litre.”

Core retail spending (which excludes the vehicle-related industries) rose 0.5 percent, after a 1.9 percent rise in the September 2018 quarter.

Actual retail spending using electronic cards was $18 billion in the December quarter, up $616 million (3.5 percent) from the December 2017 quarter.

Retail spending down in December month

When adjusted for seasonal effects, retail spending fell 2.3 percent in the December 2018 month, after a 0.5 percent fall in the November 2018 month.

“Growth in December was softer than usual, so in seasonally adjusted terms we are seeing lower sales as a result,” Ms Chapman said. 

Spending fell in four of the six retail industries. The largest fall came from the durables industry, (including electronics, whiteware, hardware, and furniture) down $58 million (4.4 percent), followed by the fuel industry, down $50 million (8.0 percent).

Sales of durables were down 4.4 percent in December – the largest seasonally adjusted decrease in the industry since October 2010.

“Spending on fuel also fell sharply in December, but those savings at the pump don’t appear to have leaked across to other retail industries,” Ms Chapman said.

Sales of clothes and shoes were also lower, down 2.1 percent in December, although monthly sales in this industry are often volatile. Spending on hospitality was flat in December and sales of supermarket food and drink (consumables) were up only 0.6 percent.

Core retail spending (which excludes the vehicle-related industries) fell 1.5 percent in December 2018, after a 0.3 percent rise in November.

The total value of electronic card spending, including the two non-retail categories (services and non-retail), fell 1.9 percent in December 2018. This follows a 0.3 percent fall in November. 

In actual terms, retail spending using electronic cards was $6.8 billion, up $40 million (0.6 percent) from December 2017.

Values are only available at the national level and are not adjusted for price changes.

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