The latest retail trends are in, and they reveal the evolving spending habits in our region:

• Retail card spending decreased by 2.7% compared to this time last year.
• Over the year to September 2024, spending declined 0.6%, slightly below the national growth rate of 0.5%. This reflects a real drop in spending power, given inflation stands at 2.2%.

What does this mean for you?

While inflation continues to ease, households are still feeling the pinch, with more income directed toward essentials like groceries, fuel, and automotive services, which saw the strongest spending growth. Conversely, discretionary categories like home goods and recreational items dropped by 7.3%, highlighting a shift toward ‘needs’ over ‘wants.'

Most of the spending in the region continues to come from locals, accounting for 77%, a slight increase from last year. Palmerston North city's Terrace End precinct remains a hotspot, experiencing the highest annual growth rate of 0.8%, while in the Manawatū district, areas outside Feilding saw a 3.1%.

What does this mean for you?