Soaring bills put households’ spending on ice

It’s a familiar story for many households across New Zealand: the bills keep climbing, and discretionary spending becomes a luxury. New data released by Kiwibank starkly illustrates this tightening of belts, revealing a particularly challenging close to the year for the retail sector.

Kiwibank’s latest spending figures confirm what many shop owners have been sensing on the ground – a significant slowdown in consumer purchases. The report paints a tough picture for retailers, with fashion retail emerging as one of the hardest-hit segments. This suggests that when budgets are squeezed, items like new clothing are often the first to be put on hold, as households prioritize essentials.

This trend underscores the very real impact of rising living costs on everyday Kiwis. As more of their income is diverted to cover necessities, there’s less left over for the ‘wants,’ putting considerable pressure on businesses that rely on consumer spending to thrive. It’s a clear signal that families are making difficult choices, with their wallets feeling the chill of soaring expenses.

Source: Original Article