Kiwibank’s latest Household Spending Tracker shows Kiwi spent more over summer than a year ago, but made fewer shopping trips, signalling ongoing pressure on household budgets.
The bank’s credit and debit card data shows transaction volumes lifted slightly in December, up 0.4% on last year, before falling 2.3% in January.
Sabrina Delgado, Kiwibank Economist, says the data highlights a continued shift in behaviour: “Kiwi are tapping, swiping and inserting their cards less often, but spending more each time. That tells us price pressures and constrained budgets remain front and centre. Households are adjusting how and when they spend.”
Essentials continue to squeeze discretionary spending
Interest rates have eased over the past year, but the impact on household budgets is gradual. Elevated costs across essentials continue to absorb a larger share of spending.
Spending on household utilities across December and January was around 36% higher than a year ago.
“When essentials take up more of the budget, discretionary spending is usually the first thing to go.”
That pressure is especially pronounced for apparel. Spending in this category declined again over summer, with both transaction volumes and total dollars spent lower than last year.
The outlook for 2026 remains one of recovery in consumption, supported by the lower interest rate environment. But for now, Delgado says: “Households are still grappling with a number of challenges. Beyond the elevated costs of essentials, lingering job insecurity and a still-soggy housing market continues to weigh on consumer confidence and willingness to spend in the near term.”
Dinner dates over brunch plates
Hospitality spending was mixed. Restaurant and bar visits increased over summer, while café visits declined. However, total café spending rose despite fewer transactions, pointing to higher costs per visit.
“Kiwi swapping brunch dates for dinner plates,” says Delgado.
Food spending followed the usual seasonal patterns, with grocery trips spiking in the lead-up to Christmas.
“Thankfully, at a time when we were making more grocery runs, food price pressures had eased compared with earlier in the year. Back in August, dollars spent at the supermarket peaked at 17.5% higher than the previous year. Whereas in December, total spend was up a far gentler 2.3%.”
Travel demand remained subdued. While accommodation spending lifted in December, flight booking volumes stayed below last year - likely reflecting high airfares, constrained household budgets, and a weaker New Zealand dollar in the case of international travel.
Bright spots emerge
Despite broader caution, some categories showed clear momentum.
Housing‑related spending was one of the strongest areas in the data. Spending at hardware stores and on home furnishings rose strongly over summer, with both transaction volumes and total spend higher than last year.
“Home‑related spending is an area where we’re seeing momentum build – particularly in the home-reno space, with Kiwi clearly enjoying a summer of DIY.” says Delgado.
Farm-related spending also surged in December, with a strong lift in both transaction volumes and values, reflecting improved incomes and confidence across the agricultural sector.
Stationery and bookshops were another standout. Transaction volumes climbed to almost 5% in December and jumped 14% in January compared with a year earlier. Even more striking, total dollar spend rose an average of 18% across the two months
“What we’re seeing are early pockets of improvement that should continue to strengthen as the recovery progresses” she concludes.
For more information, read the Kiwibank Household Spending Tracker: Summer edition.
Media contact: External Communications media@kiwibank.co.nz.