-- Higher spending on fuel drove an overall lift in New Zealand electronic retail card spending in March, Westpac said in a Friday report, noting that the month's 0.7% increase in retail spending came in slightly above its 0.5% forecast.
"Unsurprisingly, with petrol prices surging almost 19% during the month, spending on fuel increased over 17%," the bank said.
Core spending, which excludes fuel and vehicles, declined by a modest 0.1% month over month, while higher spending on consumables and durables was more than offset by a fall in the hospitality and apparel store categories, Westpac said.
The March results mean retail spending during the first quarter ticked 1% higher, marking the strongest quarter since the three months through December 2024, it added.
Westpac expects elevated fuel prices to continue to strain household budgets at least in the near term, and the bank also continues to anticipate a slight decline in consumer spending volumes in the current quarter, even as higher prices sustain the value of spending.