Electronic card transactions rebounded in March, probably due to Christchurch households replacing damaged appliances and clothing following the February 22 earthquake.
Statistics New Zealand figures released yesterday showed core retail (which excludes motor vehicle-related industries) increased by 0.9% in March. The increase was driven by the durables industry, which rose 2.5%, after a 2.4% fall in February. The durables industry includes furniture, hardware and appliance retailing.
When the two vehicle related-industries are included, the value of transactions in retail increased 1.3% in March.
ASB economist Christina Leung said there had been anecdotal evidence of a surge in television sales in the region as households rushed out to buy a set before they had received their insurance payout.
Spending on fuel increased 2.1% in March.
"Given petrol prices are estimated to have increased by more than 6% in the month, this suggests the volume of fuel sales is falling. The continued rise in petrol prices is likely encouraging consumers to change their behaviour, such as taking public transport instead."
Outside of durables and fuel, spending remained subdued, she said, which suggested households remained cautious about discretionary spending.
"We expect retail spending to recover over the second half of this year as the recent fall in borrowing costs supports an improvement in consumer confidence and a recovery in economic activity more generally," Ms Leung said.
