The figures suggest households may be becoming more confident about spending. According to ANZ’s latest card spending report, spending rose 1.8 per cent in May compared with April on a seasonally adjusted basis.
Annual growth was also positive, with spending increasing 4.8 per cent compared with the same month a year earlier. The strongest gains were recorded in discretionary spending categories, indicating consumers are allocating more of their budgets to non-essential purchases.
Hospitality spending increased by 3.5 per cent, while apparel spending rose 2.9 per cent. Spending on housing-related goods also climbed 2.7 per cent. This reflects a stronger demand for household items and longer-lasting consumer products.
Hospitality remains a significant contributor to overall spending activity, accounting for around 15 per cent of total card transactions. The apparel sector had a smaller share, while durable goods had a larger portion of household expenditure. Growth across these areas points to improving consumer sentiment and spending beyond essential needs.
Restaurants, cafes, fast-food outlets and bars all enjoyed increased customer spending during May. One of the most notable improvements came from the accommodation segment, where spending surged almost 13 per cent. This category had experienced weaker activity for some time, making the rebound particularly significant.
Retail clothing stores also benefited. Most apparel-related businesses recorded gains after a softer April. However, spending on children’s and infant clothing remained weaker and declined during the month.
The durable goods sector showed widespread improvement, with most categories reporting positive spending growth. The broad nature of the increase suggests consumers are feeling more comfortable making larger purchases.
One factor that may have supported spending growth was the decline in fuel prices during May. Lower pump costs can leave households with additional disposable income, potentially encouraging spending in other areas.
The only major spending category to record a monthly decline was motor vehicles and fuel, which fell 1 per cent. Despite this monthly drop, annual spending in the category remained strong, rising more than 10 per cent compared with May last year.
Public transport spending also rebounded after a weaker April, rising 3.6 per cent during May and posting solid year-on-year growth. Overall, the latest spending figures paint a positive picture for the New Zealand economy.
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