Electronic card transaction data has shown a slight increase during the December 2024 quarter, and a noticeable jump from the previous month.
Stats NZ has released electronic card transaction data from the December quarter of 2024. Covering debit, credit, and charge card transactions, there has been a noticeable increase in hospitality spending, highlighting a movement within the industry.
Retail card spending increased by 2.0 percent for the month of December 2024, compared to the previous month. This saw a jump of NZD $130 million, with core retail industries increasing by 1.8 percent (NZD $103 million).
Hospitality was up one percent from November to December 2024, fueling the local sector with an additional $12 million. Consumables jumped 1.4 percent, an increase of $36 million.
The non-retail (excluding services) category increased by $22 million (1.0 percent) from November 2024. This category includes medical and other health care, travel and tour arrangement, postal and courier delivery, and other non-retail industries.
Following two difficult years for the economy, business commentators have agreed that the data reflected just how challenging it has been for small businesses. Many believe that the Government’s new Economic Growth portfolio will provide benefits for small companies.
Economists hinted that previous high inflation and high interest rates had continued to influence how people spend. Some believed that retail spending was unlikely to bounce back quickly.
The total value of electronic card spending, including the two non-retail categories (services and other non-retail), increased from November 2024, up $139 million (1.5 percent).
In actual terms, cardholders made 183 million transactions across all industries in December 2024, with an average value of $58 per transaction. The total amount spent using electronic cards was $11 billion.
Compared to September 2024, hospitality had grown by 3.6 percent, equivalent to $129 million. This has been supported by seasonal dining and peak season demand from customers.
The total value of electronic card spending, including the two non-retail categories (services and other non-retail) increased by NZD $193 million (0.7 percent) compared with the September 2024 quarter.
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