New Zealand's economic activity showed signs of contraction in May 2025 as electronic card retail sales registered a decline of 0.2% from the previous month, according to the latest data released on 11 June 2025. This marks a shift from the stagnation witnessed in April, where the growth rate remained flat at 0.0%.
The month-over-month analysis indicates a cautious consumer behavior, possibly hinting at underlying economic challenges or changing spending patterns among New Zealanders. Previously, in April, the growth in electronic card retail sales did not change from the previous month, suggesting a temporary hold in consumer spending.
This dip into negative territory for electronic card retail sales raises concerns about the strength of consumer demand and its implication for the broader economy. The slight contraction may prompt policymakers and businesses to closely monitor these trends as they navigate the coming months. As electronic card transactions are a key indicator of consumer behavior, any continued downward trend could have significant consequences for the retail sector and the overall economic landscape of New Zealand.
