Strong spending continues in South

The cash registers continue to ring across the South.

Paymark figures revealed Southern spending last month continued on from a strong December spend.

In Otago last month, 8.2% more was spent on the Paymark network than in January 2015.

The Southland spend was 6.9% more.

Both regions performed better than the national 6% growth rate.

Paymark chief marketing officer Tim McFarlane said the "holiday regions'' of New Zealand had the greatest growth rates - Bay of Plenty (8.9%), Gisborne (8.8%), Marlborough (8.3%) and Otago (8.2%).

In Otago in December, $307.3 million was spent in the network, 8.5% more than in December 2014.

In Otago last year, $2972.6 million was spent in the network, a 7.9% increase on the previous year.

In Southland last year, $1176.7 million was spent in the network, a 1.1% increase on the previous year.

Otago Chamber of Commerce chief executive Dougal McGowan, of Dunedin, said the continuation of strong spending statistics in Otago was a good sign of consumer confidence.

"The spending is good for the town [Dunedin] and good for shops and businesses and keeps employment ticking over, and that's what we like to see.''

Retail NZ spokesman Greg Harford, of Wellington, said the figures reinforced the trend of Otago being a great shopping destination.

The lower spend in Southland could be due to the province's greater reliance on the dairy industry and reduced dairy payouts bringing economic uncertainty.

"But the cities, including Dunedin, look to be a lot more optimistic.''

People spent more in summer, and record tourist arrivals were increasing the growth rates.

The spending would continue for the next couple of months and "quieten down'' as winter approached, he said.

The Paymark network accounts for more than 75% of New Zealand's eftpos terminals.

shawn.mcavinue@odt.co.nz

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