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Kiwis lift spending

Kiwis lift spending

(11 July 2012 – New Zealand) Retail spending in New Zealand lifted by 0.4 percent according to the latest figures from Statistics New Zealand. A total NZ$4.2 billion (A$3.2 billion) was paid for using electronic payment cards, including eftpos and credit cards.

Core retailing accounted for 0.9 percent of the seasonally adjusted increase. People were also beginning to start eating out again with spending on hospitality including accommodation, bars and restaurants up 3.1 percent or NZ$19 million.

Spending on consumables such as food and liquor was up 1 percent or NZ$15 million.

ASB economist Christian Leung said the figures suggested a cautious recovery in household spending was continuing.

A 0.5 percent rise in spending on durables including hardware and appliances was likely to reflect the increase in house sales since late last year, Leung said.

'Spending in durables tends to increase in line with house sales, as households purchase furniture and appliance to furnish their new homes.'

Overall, household discretionary spending appeared to be recovering, but the recovery would remain gradual with debt levels still relatively high, Leung said.
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