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flag New Zealand's retail spending rose 0.6% in January 2026, but storms and rising unemployment weighed on growth.

flag New Zealand’s core retail spending rose 0.6% in January 2026 compared to the previous year, reaching $4.023 billion, according to Worldline NZ data, but growth was hindered by severe storms and heavy rainfall on January 21, which caused a 5.6% drop in daily spending. flag Hospitality spending fell 8.7% over the Auckland Anniversary long weekend in affected regions. flag The Bay of Plenty saw the largest annual decline at 3.4%, while Whanganui, Hawke’s Bay, and Palmerston North led growth with increases of 2.5%, 1.9%, and 1.9%. flag The unemployment rate rose to 5.4% in the December quarter—the highest since 2015—undermining consumer confidence and limiting discretionary spending, though business credit demand rose 13%, indicating cautious optimism among firms.

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