Consumer spending falls due to petrol prices, interest rates and weather
Tuesday 6 October 2026 · 3 outlets · 2 reports · updated 
Core retail spending decreased in August and September as households dealt with rising interest rates, higher petrol costs and poor weather. Paymark data shows August spending fell 1.8% compared to last year, while September spending dropped 1.3% to $3.572 billion.
Key facts
5 facts
- September core retail spending was $3.572 billion, down 1.3% year-on-year
- August core retail spending was down 1.8% year-on-year
- The Official Cash Rate rose 50 basis points from 2.25% to 2.75%
- Gisborne had the highest annual growth at 3.1%
- Marlborough had the lowest annual growth at -9.7%
The full story
1 min read · 2 outlets
Core retail spending in New Zealand reached $3.572 billion in September, representing a 1.3% decrease compared to the same month last year. This follows a decline in August, when spending was down 1.8% from the previous year.
Paymark chief sales officer Bruce Proffit attributed the slowdown to three factors: rising petrol prices, increased interest rates, and inclement weather. Petrol spending at fuel outlets was 35% higher than a year ago in the week ending 30 September, driven by higher prices and increased transactions.
Interest rates have risen over the last three months, with the Official Cash Rate increasing 50 basis points from 2.25% to 2.75%. Additionally, cold, wet, and windy weather across much of the country during the final weekend of September may have discouraged shopping.
Non-food retail spending showed significant volatility, dropping from 0.9% above year-ago levels in early July to 7.1% below those levels in the final week of September. Regionally, Gisborne saw the highest growth at 3.1%, while Marlborough recorded the largest decline at 9.7%.
How it developed
- Tue 6 Oct, 1:00pmReport 2 adds that the Official Cash Rate rose from 2.25% to 2.75%, notes Auckland's spending decline, and includes the ANZ-Roy Morgan Consumer Confidence index.
Where reports differ
- Report 1 states September spending was $3.57 billion, while Report 2 specifies $3.572 billion
Compiled from reports by The Post and NZ Herald.