New Zealanders are giving up spending at a rate that surpasses the downturn of the global financial crisis (GFC), and is close to passing that of the 1980s sharemarket crash, as well as the tough times of the 1970s.
Data released from Worldline on Wednesday shows June was an “especially quiet” month for retailers.
Spending was down 2.3 percent compared to the same month last year, despite population growth.
“June is typically the slowest month of the year but the first two weeks of June this year were also noticeably slower than last year. That made for quiet trading,” chief sales officer Bruce Proffit said.
“However, there was at least some pick-up on June last year in the last few days of the month, although the level remain of activity remains low overall.”
Infometrics chief forecaster Gareth Kiernan said there had been a 12.6 percent decline in quarterly sales volumes per capita, seasonally adjusted, in the Stats NZ retail trade survey since the peak in June 2021.
That is more than the 10.3 percent peak-to-trough fall during the global financial crisis.
On an annual running total basis, spending is down 8.5 percent from the most recent peak.
Kiernan said if quarterly sales data plateaued at current levels through the rest of the year, which seemed optimistic at this stage, the decline from peak should come in at 9.9 percent.
www.rnz.co.nz/news/business/521229/retail-spending-slump-nearly-surpassing-80s-sharemarket-crash