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      New Zealand Card Spending Declines for Second Consecutive Month in September

      New Zealand's electronic card retail spending decreased for the second consecutive month in September, according to data released by Statistics New Zealand. Seasonally adjusted spending fell by 0.4% from August, following a 0.9% decline in the previous month. However, actual card spending showed a year-on-year increase of 0.9%, a notable rise compared to the 0.2% increase recorded in August. This data, which encompasses approximately 68% of core retail sales, indicates that consumers are exercising caution amid ongoing economic pressures.

      In addition to the decline in card spending, food prices remained unchanged in September after a 0.3% increase in August. Year-on-year, food prices were up by 2.4%. Given that food constitutes nearly 19% of the consumer price index, the flat monthly reading alleviates some upward pressure on inflation for the month. Despite this, the overall consumer data suggests that households are reducing discretionary spending, likely due to rising living costs and concerns about fuel prices, which have been highlighted by manufacturers as a significant issue.

      While consumer spending shows signs of weakness, the manufacturing sector presents a contrasting picture. The BNZ-BusinessNZ manufacturing index indicated that the sector expanded at a stronger rate in September. Nonetheless, manufacturers have expressed concerns regarding fuel prices and the cost of living, which may impact future production and orders. The upcoming retail and inflation data will provide further insights into consumer behavior as the year progresses, particularly as the holiday season approaches.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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