Retail spending flat in April as Kiwis keep wallets closed
Durables also reported a slight increase in spending, with spending in the category up 0.1% or $0.9m.
Reflecting the wider retail industry players reporting tough winter apparel sales, spending in the category declined in April, down by 1.9% or $6m.
Services, including repair and maintenance, personal care, funeral and other personal services reported a spending decline of 0.3% or $1.1m.
Spending in the non-retail (excluding services) category also decreased in April, down by 1.5% or $33m compared to March.
That category included medical and other healthcare spending, travel and tour arrangements, postal and courier delivery and other non-retail industries.
The total value of electronic card spending, including the two non-retail categories (services and other non-retail), decreased from March by 0.2% or $18m.
In actual terms, cardholders made 158 million transactions across all industries in April 2025, with an average value of $55 per transaction.
The total amount spent using electronic cards was $8.7 billion.
Wallets closed
Westpac senior economist Satish Ranchhod said Kiwis were still hesitant to spend despite falls in interest rates.
'In part, some of the softness in spending was due to falls in petrol prices, with fuel spending down 2% over the month. However, that fall in fuel prices should have put more money back into people's pockets to spend elsewhere,' Ranchhod said.
He said spending on groceries had continued to rise in the month, up 0.5%.
However, Ranchhod is confident that spending will increase towards the later half of the year.
'Today's soft result reinforces the picture of subdued domestic demand in the early part of the year.
'Around half of all mortgages will come up for repricing over the next six months, and many borrowers will be able to refix at much lower rates.
'The related increases in disposable income levels is set to boost spending from mid-year.'
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