{"id":434358,"date":"2026-05-19T03:03:12","date_gmt":"2026-05-19T03:03:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/434358\/"},"modified":"2026-05-19T03:03:12","modified_gmt":"2026-05-19T03:03:12","slug":"retail-spending-falls-by-160-million-in-april-after-march-fuel-spike","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/434358\/","title":{"rendered":"Retail spending falls by $160 million in April after March fuel spike"},"content":{"rendered":"
Spending on motor vehicles (excluding fuel) also fell, down $8.1m or 4.1%, while apparel spending fell by $4.1m or 1.3%.<\/p>\n
The non-retail (excluding services) category, which includes medical and other healthcare, travel and tour arrangement, postal and courier delivery, and other non-retail industries, decreased by $94m or 4% in April.<\/p>\n
The services category, which includes repair and maintenance, and personal care, funeral, and other personal services also fell, with spending down $12m or 3%.<\/p>\n
The total value of electronic card spending, including the two non-retail categories, decreased from March 2026 by $160m or 1.6%.<\/p>\n
In actual terms, cardholders made 168 million transactions across all industries in April 2026, with an average value of $55 per transaction.<\/p>\n
The total amount spent using electronic cards was $9.2 billion.<\/p>\n
Weaker than expected<\/p>\n
Westpac senior economist Darren Gibbs said the outcome was much weaker than Westpac had expected.<\/p>\n
\u201cDespite a near 13% lift in petrol prices over the month, spending on fuel declined 2.0% month-on-month after a near 16% month-on-month increase in March,\u201d Gibbs said.<\/p>\n
\u201cThis suggests a decline in the volume of fuel purchases following some panic buying towards the end of March.\u201d<\/p>\n
Gibbs said the decline in retail fuel prices through May should have provided some relief to households, but that fuel prices will continue to siphon money out of households\u2019 pockets.<\/p>\n
He said Stats NZ\u2019s retail trade survey for the March quarter will likely show a lift in retail spending, consistent with a lift in gross domestic product (GDP).<\/p>\n
However, spending in the current quarter and second half of the year will depend on how the Middle East conflict evolves and how the Reserve Bank responds to the near-term spike in inflation.<\/p>\n
\u201cSigns of slowing activity in the housing market may weigh further on spending on durables over coming months. <\/p>\n
\u201cAnd over time, weak global consumer confidence and increased travel costs will also likely weigh on the strong growth in tourist arrivals that has helped the hospitality sector to weather a time of subdued domestic spending.\u201d<\/p>\n
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.<\/p>\n