NZ actual electronic card retail sales +1.3 pct in June on year ago

New Zealand's retail electronic card transactions rose by 1.3 percent in June 2025 compared to the same period in the previous year, according to data released by Statistics New Zealand. This annual increase follows a mixed performance in the first half of the year, with monthly fluctuations reflecting broader economic conditions.

The rise in card spending was supported by a 0.5 percent increase in retail sales during the month of June, marking the first monthly gain in four months. Core retail spending, excluding fuel, showed stronger momentum, rising 0.7 percent month-on-month. Notably, spending on groceries and household durables contributed significantly to the increase, with categories such as furnishings and apparel seeing gains of 0.6 percent and 3 percent, respectively.

However, the hospitality sector continued to face challenges, with spending declining for the sixth consecutive month. This trend reflects slowing labor market and cost-of-living concerns.

Looking ahead, analysts anticipate a gradual recovery in retail spending as lower mortgage rates begin to take effect. Around half of New Zealand mortgages are expected to be up for refixing over the next six months, potentially boosting disposable income and consumer confidence. While annual retail growth remains modest at 1.3 percent, the data suggests a tentative stabilization in consumer spending amid ongoing economic uncertainty.