December spending booms again

Otago shoppers pulled out their plastic and spent strongly last month, reflecting a ''vibrant and positive'' mood among southern consumers.

Otago's percentage increase in spending was behind only Hawke's Bay and Bay of Plenty. Photo:...
Otago's percentage increase in spending was behind only Hawke's Bay and Bay of Plenty. Photo: supplied

Paymark figures released yesterday showed $339 million was spent in Otago, a 9.5% increase on the previous December and the third highest percentage rise in spending among the country's 17 regions.

Last month's spending in Southland was also up, by 6.9%, to $132.7 million, compared with the previous December.

Otago's percentage increase in spending was behind only Hawke's Bay (10.9%) and Bay of Plenty (9.9%).

In turn, Otago spending in December 2015 was up 8.5% on the equivalent previous month, and Southland spending rose 9% over the same period.

Paymark spokesman Paul Brislen said the spending momentum of the last four years had been maintained through the latest busy pre-Christmas period.

The value of overall national Paymark transactions for the month totalled nearly $6 billion, and underlying spending growth through Paymark was 6.6% between December 2015 and last month.

The annual underlying growth rate was higher in regions away from the major cities, suggesting more time spent at the baches and beaches this Christmas, he said.

Such growth averaged 6.0% in the three largest regions and 7.8% in the other regions.

Otago Chamber of Commerce chief executive Dougal McGowan hailed the latest spending figures as showing ''vibrant and positive'' prospects for the region.

Dunedin in particular was benefiting not only from overseas tourism, including large numbers of cruise ship visitors, but also from important ''domestic'' tourism.

Many people were travelling from throughout the South to shop in the city.

Otago and Southland had also benefited from other factors, such as a significant overall recovery in milk prices, which was also boosting rural confidence.

Mr McGowan was in Te Anau yesterday and said the town was very busy.

He had earlier seen large numbers of buses heading into the area.

The Paymark data, combined with other recent positive statistics, was painting a ''fantastic'' picture of rising consumer confidence, which was ''better for employment'', and better for the economy.

Enterprise Dunedin chief executive John Christie said the ''substantial increase'' in Otago spending amounted to a ''very pleasing result''.

Dunedin's retail sector had benefited, and such statistics contributed to a broader ''positive picture'' about Dunedin, and reflected consumer confidence in ''job security'', Mr Christie said.

''It shows confidence in our economy, and right through Otago we're seeing that coming through,'' he said.

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

john.gibb@odt.co.nz

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