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Card spending up in June

NZN 10/07/2016 Tina Morrison

Spending on credit and debit cards in New Zealand rose in June, led by increased spending on durable goods.

Retail spending rose 1.2 per cent in June, seasonally adjusted, after a 0.3 per cent decline in May, Statistics New Zealand said.

All six retail industries recorded gains in the latest month, the first time since March 2015.

The biggest increase was felt in durable goods, where spending advanced 1.4 per cent. Actual sales were up 6.8 per cent in June from the same month last year.

Consumer spending is being underpinned by record low interest rates and an expanded population due to record high migration and tourism levels. Spending on durable goods, which includes, furniture, hardware and appliances as well as pharmacy, cosmetic and toiletry retailing, has gained every month so far this year.

"Gains in spending were widespread in June," Westpac's Satish Ranchhod said.

"There were particularly large increases in spending on durables (likely related to the continuing strength of the housing market) and apparel, possibly assisted by the recent turn in the weather. The strong tourism season also appears be boosting spending with a solid increase in spending on hospitality."

Total electronic card transactions rose 1 per cent in June.

Card-holders made 128 million transactions in June with an average value of $49. The total amount spent across all transactions was $6.3 billion.

JUNE CARD SPENDING

* Total spending: $6.3 billion

* Number of transactions: 128 million

* Average value of transaction: $49

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