Economy

Dramatic spending drop in lockdown

Spending through electronic payments dropped steeply on the first day of the Covid-19 lockdown compared with the same day a year ago.

Figures just released by Paymark - which monitors electronic payments - show spending dropped by two-thirds - 72 percent - on the first day of level four restrictions then remained down by similar levels for rest of the week.

Paymark said on the Monday and Tuesday before the midnight lockdown on 26 March, spending was up 50 percent as people stocked up at liquor outlets, hardware and homeware shops and recreational goods stores.

It said the pre-lockdown spending splurge was not enough to offset the loss of sales later in the week for most merchants.

Across the non-food retailers, excluding pharmacies, spending was 28 percent below for the week to Sunday 29 March, compared with the same time last year.

Otago experienced the largest drop in spending, followed by Auckland/Northland and Wellington.

Paymark figures show that across the board spending during the first week of lockdown dropped by a third to $907 million.

This article was originally published on RNZ and re-published with permission.

Help us create a sustainable future for independent local journalism

As New Zealand moves from crisis to recovery mode the need to support local industry has been brought into sharp relief.

As our journalists work to ask the hard questions about our recovery, we also look to you, our readers for support. Reader donations are critical to what we do. If you can help us, please click the button to ensure we can continue to provide quality independent journalism you can trust.

Comments

Newsroom does not allow comments directly on this website. We invite all readers who wish to discuss a story or leave a comment to visit us on Twitter or Facebook. We also welcome your news tips and feedback via email: contact@newsroom.co.nz. Thank you.

With thanks to our partners