$640 million last down amid growing Omicron infections. It amounted to a decline of 7.6 per cent from the previous month, the agency revealed. “This drop across the board was the first of its kind since August 2021, when the country was in lockdown at alert level 4,” Ricky Ho, business performance manager at the national statistical office, said.
The biggest drop in card spending was on apparel, which includes clothing, shoes, watches and jewellery, with a 14.4 per cent decrease from the previous month, followed by fuel, which was down 5.9 per cent. Kiwis also cut back on consumables last month, which includes groceries and liquor. The downturn in this category was $141 million (5.7 per cent) from January. “The decrease in fuel spending coincided with more people working from home due to the spread of Omicron and isolation rules being in place,” Ho added. “In addition, rising fuel prices may have influenced people’s decisions on whether or not to use their cars.”
Meanwhile, spending in retail using electronic cards grew last month by to $5.4 billion, up 1.1 per cent from February 2021. However, spending in the hospitality sector, including restaurants and accommodation dropped by $97 million, which was possibly a result of new COVID outbreak, according to Ho. “With the spread of Omicron in the community, people may have avoided travelling or eating out,” he said.
