Winter brings a diverse pattern of spending. There are the treats: we spend more at bakeries and movies. There are the necessities: we spend more on electricity and electrical tradies. Then there are the tragedies: we also spend more at funeral directors. In July this year, the bias was towards more pies rather than pyres, spending amongst Bread and cake retailers increasing by 10.9% from last July while spending at Funeral Directors, Cemeteries and Churches increased only 2.5%.
The wider group of merchants who experience increased business during June to August include electricity and gas companies, electricians, movie outlets, parking service providers, drycleaners, funeral directors, winter entertainment providers, local government, accountants and lawyers. Combined these merchants recorded $277 million spending through Paymark during July, up 10.3% on July last year.
Conversely there is a group of sectors that experience their lows during the winter months. These include accommodation providers, book shops, gyms, garden stores, paint shops, some clothes shops, hardware stores, petrol stations, rental car firms, vineyards and jewelers. In total, this group of merchants recorded $1105 million spending through Paymark in July, up 4.5% on July last year.
Across all sectors, the annual underlying growth rate was a moderate 4.9% since July last year. In total, 107.8 million payments were transacted in July 2018 for a total of $5.0 billion. The seasonally adjusted increase since June was 0.5%. Unlike measures of consumer and business confidence, spending growth through Paymark did not slow any further in July. The largest regions of Auckland/ Northland, Canterbury and Wellington continue to show the slowest annual growth rates. Conversely spending in the smaller regions is growing at a strong pace, with the notable exception of West Coast.
Paymark All Card Data
July 2018 vs July 2017
- Bay of Plenty
- Hawke's Bay
- Palmerston North
- West Coast
- South Canterbury