Retail sales data from Stats NZ last week showed spending ramped up towards the end of last year. Over the December quarter, retail sales were up 0.9%. Meanwhile, over the year retail sales were up just 0.3%, reflecting the softness in sales earlier in the year. The good news, was the notable increase in spending on discretionary spending. Spend on durables, from furniture to electronics, was up between 4-5% respectively over the quarter. Meanwhile spending in accommodation and recreational goods posted sizeable increases of 7.6% and 5.8%. Such moves point to a recovery in consumer appetite helped by the lower interest rates and stable inflation. Looking into 2025, the outlook is for a continued improvement in consumer appetite. Our own Kiwibank transactional data has already shown as much going into 2025. Spending over the summer was 2.3% greater than the 2024 monthly average. But the typical spending spike was far more muted than previous years. Check out our spending tracker “Summer of cautious indulgence” for more.
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