New Zealanders spending more on hospitality and clothing, but less on fuel and services

New Zealanders are spending more on hospitality and clothing thanks to events like the FIFA World Cup, but less on fuel, vehicles and services, new data shows.

Stats NZ figures show a 3.5 percent increase in core retail spending compared with July last year. It comes after a flat June, where core retail spending rose just 0.4 percent year-on-year.

Retail NZ's advocacy, advice and communications manager Denise Garland said falling fuel prices meant households had a bit extra in their pockets, and New Zealanders had taken that opportunity to treat themselves.

In the last month, petrol prices were down 5.7 percent, while diesel prices fell by 12.1 percent.

Spending on hospitality was up 3.2 percent to $46m and apparel up 3.2 percent to $11m, while fuel was down $22m (4.5 percent) in July.

Garland said events helped to increase retail spending.

"The men's FIFA Football World Cup looks to have encouraged people out into bars and restaurants right around the motu. Events are hugely important to retail, because extra foot traffic in our town and city centres also means more people are out browsing in our high streets."

She said it was too early to say if it was a broader shift in consumer confidence, or a temporary spike due to a unique combination of circumstances.

"July was unique in that not only was there a major international sporting event for the first half of the month, but there was also a public holiday - Matariki - and there were five Fridays, which are typically the weekday where we see the biggest spend in retail."

Consumers made 176 million transactions across all industries in July, with an average value of $55 per transaction. The total amount spent using electronic cards was $9.6 billion.

Non-retail spending also saw a 0.7 percent increase of $17m in July.

Apparel had seen an increase of 2.5 percent, the biggest year-on-year increase in two years, and the biggest bump in June to July spending since 2020.