Source: Radio New Zealand
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Consumers were a shade more willing to spend at the start of the year, although stormy weather put a dampener on things in some parts of the country, according to payments firm Worldline.
Spending at core retail merchants rose by 0.6 percent in January compared with a year ago, with a continued mixed showing between regions and cities, and between the North and South Islands.
Worldline NZ’s chief sales officer, Bruce Proffit, said the modest but positive start to the new year for consumer spending would be welcomed by retailers after the tough past year.
“The annual growth rate seen in January 2026 compared to 2025 was not high but was at least a positive start to the year – but we also noted a sharp fall in spending on Thursday 21 January, the day of storms and heavy rainfall that had tragic impacts in some areas.”
Retail spending across the Worldline NZ network slumped by 5.6 percent that day.
Annual spending growth was highest in Whanganui (+2.5 percent), Hawke’s Bay (+1.9 percent) and Palmerston North (+1.9 percent), and lowest in the Bay of Plenty (-3.4 percent), Taranaki (-3.0 percent) and Gisborne (-1.0 percent).
“The net effect of the storms over the month resulted in Bay of Plenty and Gisborne being amongst the weakest regions in the country in terms of the annual change in spending,” Proffit said.
The negative effect on spending continued over the following Auckland Anniversary long weekend, including at hospitality outlets.
Retail NZ chief executive Carolyn Young remained cautious, saying the latest rise in unemployment to 5.4 percent, pointed to some time before consumers would stop focusing on just getting by.
“Retailers have been experiencing tough trading conditions for some time now, and while business confidence is largely positive overall, it is clear it could be some time before New Zealanders feel confident enough in the economic conditions to increase their discretionary spending.
“Many retailers will be feeling as though they are just treading water as the economy moves sideways, rather than forwards,” she said.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
