Retail card spending in November 2025 climbed 1.2% ($86 million), higher than October, according to Stats NZ.
Core retail spending also climbed 1.1% ($67m) from the previous month.
November’s total retail card spending grew 1.6% compared to the previous year.
Westpac senior economist Darren Gibbs attributed the rise to strengthening household finances and the growing popularity of Black Friday sales.
“In recent years, retail spending outcomes have been volatile around the year-end, likely reflecting sensitivity to the Black Friday, Christmas and New Year sales,” Gibbs said.
“We should have a good idea of underlying consumer spending momentum by the time that the January 2026 card spending report is released, just a couple of days before the RBNZ’s next OCR decision on February 18.”
Apparel saw the biggest monthly jump by category, up 3.4% or $11 million from October. Durable goods spending rose 2.1% or $35 million while consumables edged up a modest 0.4% ($12 million).
Gibbs noted that consumables led annual growth at 4% year-on-year, driven by sharp food price inflation over the year.
Fuel spending rose 1.8% ($8.7m), with motor vehicles (excluding fuel) up 2.6% ($5.1m).
Hospitality spending also climbed 1.3%, or $18 million.
Non-retail categories (excluding services), covering medical/healthcare, travel, tour arrangements, and postal/courier services, jumped 3.9%, or $87 million, from October 2025.
The services category (repair, maintenance, personal care, funerals, etc.) increased 2.8% ($11m).
Retail NZ chief executive Carolyn Young called the result positive news, signalling early green shoots in the sector as retailers approach the peak holiday period.
“November really is the launchpad for the busy Christmas sales, so this increase sets up retail for a positive end to a really difficult trading year,” Young said.
“It seems that the potential relief ahead signalled by the Reserve Bank may be here, but it will be important that November sales figures are a launchpad rather than a one-off sales period.”
“The retail sector has been under significant strain, with businesses advising that they have been absorbing as many cost increases as they can, working harder than ever as margins are being squeezed, which has created significant challenges to remain open.
“Hopefully these sales numbers are a sign that we are turning the corner, as retailers will be looking to 2026 as a year of recovery.”