New Zealand retail and services sector trends

In early August 2026, New Zealand’s retail sector faced slowing wage growth. Data from Retail NZ indicated that the average retail wage rose to NZ$30.94 per hour, a 1% increase that marked a significant deceleration from the 3.4% rise seen in 2025. While small and medium-sized enterprises reported modest monthly gains in staffing, annual wage growth for these businesses stalled at zero due to margin pressures.

By mid-August, indicators suggested a slight recovery in consumer activity. Electronic card transaction data showed that apparel spending grew by 1.1% year-on-year in July, reversing previous declines. Core retail spending, encompassing consumables and hospitality, rose by 3.5% in actual terms, potentially aided by falling fuel prices.

Additionally, the BusinessNZ Performance of Services Index reached 50.6 in July, signaling two consecutive months of expansion. However, the recovery remains characterized as fragile, with the services employment sub-index at 48.5, suggesting that firms continue to exercise caution regarding new hiring due to economic uncertainty and cost-of-living pressures.