Spending growth slowed in August, but travel, recreation and movie theatres remained bright spots as consumers pulled back on hospitality and household goods.
Spending on ANZ cards slowed sharply in August, but New Zealanders still appeared willing to spend on travel and entertainment while remaining cautious elsewhere.
Card spending was flat in August on a seasonally adjusted basis, with annual growth easing to 4.1 percent from 6.1 percent in July.
ANZ noted August was “seldom joyful weather-wise” and said poor weather might have affected spending patterns.
Most major spending categories slipped slightly during the month, but tourism and recreation and non-retail trades and goods both recorded gains.
Tourism and recreation spending rose 2.3 percent in August and was 8.8 percent higher than a year earlier.
Spending on airlines and at airports was up 9.4 percent from a year ago, continuing the recovery in travel activity.
Movie theatres were another bright spot. Spending jumped more than 10 percent during the month and was 77.4 percent higher than a year ago.
Whether that’s an “Odyssey effect” or just a renewed enthusiasm for the big screen is open to debate, but cinemas are clearly having a moment.
By contrast, spending was softer in some discretionary categories.
Hospitality spending fell 1.0 percent in August after strengthening in July, while housing-related durables dropped 1.3 percent, with every store type in that category recording a monthly decline.
Together, those two categories account for nearly a third of all card spending.
Fuel spending fell 1.5 percent in August despite higher prices at the pump, although it remained 8 percent above year-ago levels.
ANZ said overall spending trends remained mixed, with fuel spending elevated and travel activity continuing to recover.
The bank also noted that while card spending has been broadly flat in recent months, annual growth remains positive and real spending has continued to edge higher over the past two years.