19 Jan 2022

Fuel industry consumer spending up, hospitality down in December

1:01 pm on 19 January 2022

Retail spending was slightly up last month during the busy Christmas period and as Covid-19 restrictions eased.

An EFTPOS card being swiped at a terminal.

Within the retail sector, the fuel industry had the highest increase from November, up 4.2 percent. Photo: 123RF

Stats NZ said total electronic card spending - which accounts for about two-thirds of all retail sales - increased 1.9 percent in December compared to November, and up 3.4 percent from December 2020.

However, core retail spending only increased 0.4 a seasonally adjusted percent from November, although it was up 4.2 percent year on year.

Within the retail sector, the fuel industry had the highest increase from November, up 4.2 percent.

Spending was up across all industries except for hospitality, Stats NZ said.

Stats NZ business performance manager Ricky Ho said although there was an increase, the spending was still recovering from the effects of the lockdowns.

"The increase in spending on fuel is not surprising, as the easing of restrictions and opening of the Auckland border allowed more people to go on holiday over the Christmas break," Ho said.

Spending on services saw a big jump, up 16.6 percent Stats NZ said.

"As Covid-19 restrictions eased in December across most of the country, New Zealanders had access to a wider range of products and services, such as hairdressers and personal care services, that they could spend their money on," Ho said.

Looking at the quarterly figures, retail spending for the three months ending December increased 7.5 percent from the September quarter.

"The September quarter was more heavily impacted by higher Covid-19 restrictions, so the increase in spending this quarter is not surprising," Ho said.

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