29 Apr 2014

Online sales growth loses momentum

1:29 pm on 29 April 2014

The number of people choosing to make purchases online internationally and domestically continues to grow but the momentum has tapered off.

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Photo: RNZ

The Bank of New Zealand's online retail sales index for total digital purchases for March was up 9 percent compared with the same month last year.

But the seasonally adjusted three-month moving average was flat between February and March, indicating growth has lost momentum.

Domestic online purchases grew 5 percent.

On an annual basis, the growth rate has been below 7 percent for five of the last seven months.

International purchases were 15 percent higher but this has eased from about 20 percent.

BNZ director of research Gary Baker said nearly two-thirds of the online spending growth since March last year had come from international purchases.