Paymark transaction data for December shows the clearest signs yet that Otago is emerging from "the clutches of the recession".
The company processes 75% of all electronic transactions in New Zealand, and figures released yesterday showed the value of Otago transactions processed during December had increased 3.4% from $223.7 million in December 2009 to $231.2 million in December 2010.
The number of transactions in Otago had also increased from 4.08 million (December 2009) to 4.26 million (December 2010).
Otago Chamber of Commerce chief executive John Christie said the figures showed Otago's economy was "fairly robust" and backed up what the chamber was hearing from its survey of businesses before Christmas.
"It's heartening. It's a consistent message we are hearing and it shows we are heading out of the recession.
"We were being told to cut spending at Christmas in 2009, and there was a lot of uncertainty in the market.
"Things are certainly more buoyant than this time last year - more confident."
By region, retailers in South Canterbury, Gisborne and Waikato fared well during December, with year-on-year increases of 6.4%, 6% and 5.2% respectively.
Festive growth was not experienced as much on the West Coast and Marlborough where spending through Paymark declined 1.6% and 5.9% respectively.
Otago's statistics reflected the national trend.
The number of card transactions in New Zealand for December 2010 was 4.2% higher than the same month last year, and the debit/credit spending pattern has continued, with debit usage up 5.9% and credit card usage down 0.8%.
Paymark head of sales and marketing Paul Whiston said the figure indicated people remained cautious about spending and were making smaller purchases, using only money they had rather than getting into more debt.
Despite the value of national card transactions rising 3.8% from $4303.8 million in December 2009 to $4469.5 million in December 2010, the average value of single card transactions declined by 1.7% in 2010 to $49.34.
"Broken down, the average debit card purchase averaged $35.68 and for credit card purchases, the average was $95.18."
Mr Whiston said the increase in spending was reflective of modest, but improving growth across the general retail sector.
Although the statistics were promising, Mr Christie said there was still a "long way to go before we are free of the clutches of the recession".
Mr Whiston agreed.
"While the increase in activity towards the back-end of 2010 would have been an encouraging way for retailers to end the year, the situation remains one where the near-term should be approached with caution," he said.
