Retail Spending Pulse

Retail spending in New Zealand remains weak, with per-person card spending falling 0.3% in May as households prioritize essentials over discretionary items. Westpac anticipates continued sluggish growth and expects the RBNZ to initiate rate hikes later this year.

Key Takeaways

• 1.Retail spending growth in New Zealand remains soft, with per-person spending on cards down 0.3% in May.
• 2.Discretionary spending is being pressured by high living costs, specifically fuel and essentials, despite a recent easing in petrol prices.
• 3.Westpac expects the RBNZ to hike the Official Cash Rate three times by the end of 2026, starting in September.

Table of Contents

• Spending growth remains soft
• Living costs and uncertainty remain a drag
• Regional breakdown

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