Increased customer spending due to record high fuel costs
(13 September 2012 – New Zealand) The ANZ attributed a rebound in customer spending to record high petrol prices last month.
Total card spending in retail rose a stronger than expected 3 percent last month on July to NZ$4.27 billion (A$3.34 billion), according to seasonally adjusted Statistics New Zealand figures.
Fuel retailing was a major contributor to that increase, up 11 percent or NZ$67 million to NZ$689 million, as the price of 91-octane fuel hit the NZ$2.23 per litre last month.
Excluding fuel and vehicle-related purchases, retail card spending rose 1 percent to NZ$3.5 billion, with all four categories recording increases.
ANZ senior economist Sharon Zollner said it was surprising fuel sales had not dropped off as prices rose, but overall the result was little more than a rebound from a weak July as earlier forecast.
'We said then we wouldn't be surprised to see a rebound in the coming months and it looks like it's all arrived in August.'
Monthly retail data was volatile but the underlying growth trend was one of modest respectability, Zollner said.
Total retail card spending was increasing by 3.6 percent per annum, while core retail card spending - excluding car-related sales - was growing by 3.1 percent per annum, based on card spending for the three months ending August year on year.
'That's probably the best New Zealand can manage at the moment, given consumers have got to pay back debt.'
Fuel retailing was a major contributor to that increase, up 11 percent or NZ$67 million to NZ$689 million, as the price of 91-octane fuel hit the NZ$2.23 per litre last month.
Excluding fuel and vehicle-related purchases, retail card spending rose 1 percent to NZ$3.5 billion, with all four categories recording increases.
ANZ senior economist Sharon Zollner said it was surprising fuel sales had not dropped off as prices rose, but overall the result was little more than a rebound from a weak July as earlier forecast.
'We said then we wouldn't be surprised to see a rebound in the coming months and it looks like it's all arrived in August.'
Monthly retail data was volatile but the underlying growth trend was one of modest respectability, Zollner said.
Total retail card spending was increasing by 3.6 percent per annum, while core retail card spending - excluding car-related sales - was growing by 3.1 percent per annum, based on card spending for the three months ending August year on year.
'That's probably the best New Zealand can manage at the moment, given consumers have got to pay back debt.'
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