NZ Retail Spending Hits the Brakes in August
New Zealand's retail spending took a hit in August, according to Westpac, one of the country's biggest banks. The total spent by households fell 0.9% to NZ$7.02 billion, with only fuel seeing an increase.
The bank attributed the decline to higher living costs and a cooler job market squeezing discretionary budgets. Household spending on groceries dropped 0.4%, household durables like furnishings fell 1.6%, and hospitality spending slid 1.7%. Fuel was the exception, rising due to pump prices climbing back above NZ$3 per liter.
Westpac notes that retail spending has been 'moving sideways' since 2023, despite a growing population and increasing consumer prices. This means that households are likely buying less once adjusted for inflation and headcount, cutting back on non-essential purchases first.