Electronic card spending took a dive in June, with Westpac expecting retail spending levels to rise ‘only gradually’ in the coming months

Retail spending in New Zealand took a tumble in June as consumers tightened their wallets and spent less on household items and fuel.

Statistics New Zealand’s latest electronic card transactions for June 2026 show retail spending dropped by 1.4% or $98 million in June. This is down from the 1.6% monthly increase in retail spending that Stats NZ reported in May.

Actual core retail card spending (which doesn’t include fuel and motor vehicles) fell by 1.5% or $92 million in June compared to the month prior. This was also a big drop from the 1.7% monthly increase reported in core retail spending in May.

The total amount spent using electronic cards in June was $9.1 billion. Stats NZ said in actual terms, cardholders made 166 million transactions across all industries during the month, with an average value of $55 per transaction. 

The $55 per transaction figure is up on a figure of $54 per transaction for the same month a year ago.

By retail spending category, movements in June were:

• durables, down 3.9% or $67 million
• hospitality, down 1.9% or $28 million
• fuel, down 1.7% or $8.9 million
• apparel, down 2.2% or $7.4 million
• motor vehicles (excluding fuel), up 0.8% or $1.6 million
• consumables, up 0.4% or $11 million

'Things are still looking tough'

Westpac senior economist Satish Ranchhod said June’s fall in spending was partly due to the fall in fuel prices.

“However, while lower fuel prices have put money back into households’ pockets, spending was also down in most other areas. Of note, June saw spending on furnishings and other household durables falling 4%, with spending on both apparel and hospitality down 2%.”

Ranchhod said the only retail category that saw a rise in June was spending on groceries, up 0.4%.

“Taking a step back and looking at the broader picture for the retail sector, things are still looking tough. Despite recent falls, fuel prices are still well above the levels we saw prior to the Middle East war, and consumer confidence remains down on the levels we saw at the start of the year,” he said.

“Looking ahead, the pressure on fuel costs looks likely to persist. With renewed tensions in the Middle East, global oil prices are up around 10% since the start of this week. If that’s sustained, petrol prices in New Zealand could be headed back up above $3/ltr. Combined with other cost of living pressures, a soft labour market and continued economic uncertainty, we expect spending levels are likely to rise only gradually through the back part of the year.”

The retail sales figures from Stats NZ are the first ‘partial indicator’ of the forthcoming gross domestic product (GDP) figures for the June quarter, which are due to be released on September 17. The retail spending data acts as a good sign for what the GDP figures might look like.

Currently, the Reserve Bank’s GDP nowcasting model, Kiwi-GDP, predicts an 0.85% increase in GDP growth in the June quarter and 1.86% in GDP growth during the September quarter.