Latest card spending data from the country's biggest bank shows that annual growth has fallen below 1%, suggesting sales volumes are still falling

The country's biggest bank says its customers' card spending growth has fallen under 1% y/y in June, suggesting sales volumes are still falling.

A detailed data pack for June compiled by ANZ chief economist Sharon Zollner highlights that spending on durables, discretionary spending categories, clothing and categories related to the housing market is particularly weak at the moment.

Monthly electronic card transactions data released by Statistics NZ on Friday showed that in June spending declined for the fifth month in a row.

The ANZ data puts a granular perspective on the extent of, and the nature of this shrinking spending by the Kiwi consumer.

Zollner said tourism-related spending saw a particularly sharp fall in June (seasonally adjusted) with spend lower than a year earlier.

Meanwhile spending on miscellaneous services, miscellaneous goods and utilities/repairs are the only categories where annual growth remains positive.

She said the year-on-year decline in durables spending "continues to deepen", with the only categories not in the red year-on-year being miscellaneous services, miscellaneous goods (supermarkets are in this category), and utilities & repairs.

"The contributions of each category to total card spending growth in the past year shows growth being held up by miscellaneous goods (which includes both buy-now-pay-later payments and supermarkets).

"The waning growth impact of the tourism recovery is notable," Zollner said.

In terms of housing-related spending, Zollner said this is down 3.2% year-on-year.

"Pretty much every category is down on a year earlier. Falls could be a mix of lower sales volumes and price reductions.

"Sharply weaker construction activity is clearly having a big impact on this category," Zollner said.

When it comes to treating ourselves, well the ANZ data is showing that spending across a range of discretionary spending types continues to sink overall, down 3.6% year-on-year.

"Restaurants & bars is by far the largest category in this group and the fall versus a year ago continues to deepen, with turnover now running at -6.3%," Zollner said.

And meanwhile, the clothing retail trade, as Zollner puts it, continues to go "through the wringer".

"The clothing retail sector continues to do it really tough, with turnover down around 4% year-on-year in nominal terms.

"Most clothing store types have spent the majority of the past year experiencing lower revenue than in the same month a year earlier."

Zollner said durables spending remains under pressure due to a soft housing market, high interest rates and a weakening labour market.

Spending versus a year earlier dropped from -6.6% in May to -9.1% in June.

"If it has wheels, it’s hard to sell currently," Zollner said