Retail Spending Declines 0.5% in September, Breaking Growth Streak

Retail spending in New Zealand fell by 0.5% in September 2025, marking the end of a three-month growth streak. This decline translates to a decrease of $34 million compared to August, disrupting the positive trend observed in previous months. The core retail sectors also experienced a downturn, with spending decreasing by 0.4%, equivalent to $25 million.

The most significant reductions in spending were seen in the motor vehicle sector, which decreased by 2.6% or $5.2 million. Apparel sales also faced a drop, down 1.4%, amounting to $4.8 million. Additionally, spending on durable goods fell by 0.8%, representing a loss of $14 million.

Consumer spending in the consumables category also saw a decline of 0.5%, which translates to a reduction of $15 million. Similarly, spending on fuel fell by 0.5%, resulting in a decrease of $2.5 million.

Analysts note that this downturn in retail spending could indicate shifting consumer confidence. Following a period of steady growth, the recent decrease suggests that factors such as inflationary pressures and changing consumer behavior may be influencing spending patterns.

The data reflects a broader trend in economic activity, as consumers appear to be tightening their budgets in response to fluctuating prices and uncertainties in the market. This shift may have implications for retailers looking to strategize and adapt in a changing economic landscape.

As the industry moves forward, stakeholders will be keenly observing whether this dip is a temporary setback or indicative of a more prolonged period of reduced consumer spending.