Electronic spending across the retail sector fell by $166 million in December compared with the prior month, according to Stats NZ.

The 2.5 per cent drop was the first decline in retail spending in nine months.

The Christmas period saw Kiwis spending less across all major areas of retail, except for consumables (items like groceries and liquor).

Stats NZ said that while spending last month actually rose in actual terms, the increase was smaller than usual for the Christmas season.

“The fall in retail card spending is large for a December month, and this month’s drop is the first in nine months,” Stats NZ business performance manager Ricky Ho said.

The only spending category to see a rise in spending was consumables which was up $39m, or 1.5 per cent, from November 2022.

The steepest drop in spending was for durables which was down $95m (5.7 per cent). The category includes furniture, hardware, and appliances and saw a rise in spending last October.

Fuel spending dropped $26m (4.3 per cent) compared to the previous month, while spending on clothing and apparel was down $17m. Motor vehicle spending also fell by $6.1m (2.9 per cent) last month, showing the smallest decrease in spending.

Retail spending for the December 2022 quarter was up $110 million (0.6 per cent) compared to the September 2022 quarter.

Spending on consumables rose 2.1 per cent ($154m) compared to the September 2022 quarter.

Motor vehicles and clothing and apparel followed behind at a $17m (2.9 per cent) and $15m (1.4 per cent) rise respectively.

Spending on durables fell the most last quarter, down $74m (1.5 per cent) while fuel spending was down $197m (9.8 per cent).

While December 2022 retail card spending rose in actual terms, the increase was smaller than those typically seen in past December months. After adjusting for normal seasonal patterns, this resulted in a decrease for the December 2022 month.

- Alka Prasad, NZ Herald