Customer spending has lifted again as winter fades away, with Summer expected to be the true test of wider economic pickup.
Nationwide consumer spending again nudged above year-ago levels in August, but lower interest rates and an increasing tourism rebound may finally see that trend lift higher in the coming spring and summer months, according to Worldline NZ.
Figures released show consumer spending through all Core Retail merchants in Worldline NZ’s payments network in August 2025 reached NZD 3.77 billion, which is up +2.0 percent on August 2024, following adjustments for merchants coming and going from the network.
Worldline NZ’s Chief Sales Officer, Bruce Proffit, said while there is little change of note in the August spending patterns, annual growth rates remain positive, albeit modest.
“Spending through Core Retail merchants was up on last year for the fifth month in a row, and while the growth is low, it is at least positive overall. Also, as has been seen in recent months, the spending growth appears largely related to higher food prices and a slight pickup across a wider set of merchants outside of the major urban centres,” he said.
Proffit said the key thing to watch from here will be consumer demand as New Zealand retailers approach the busier spring and summer spending months of the year.
“As is usual for this time of year, we should see a steady rise in spending in the months approaching Christmas. However, of greater interest will be whether wider forces will also add to demand, including declining interest rates and a further tourism rebound,” he added.
“We will look closer at a couple of merchant groups in the months ahead for signs of a wider pickup. Hospitality merchants were only up +0.5 percent.”
Meanwhile, in the regions, Core Retail annual spending growth for August was highest in Nelson (+7.3 percent), Whanganui (+6.4 percent), West Coast (+4.9 percent) and Taranaki (+4.1 percent), while spending declined on the same month last year in Gisborne (-1.4 percent), Marlborough (-0.5 percent) and Wellington (-0.3 percent).
“But lower interest rates should at some stage feed through to larger big-ticket sales and hence more spending at these housing-related merchants. And more tourists would be a welcome boost to the hospitality sector this summer. These will certainly be trends worth watching.”
More news here.
