# New Zealand retail and services sector trends > Live situation record from CLSTR: https://clstr.news/situations/new-zealand-retail-and-services-sector-trends > Updated: 2026-08-16T22:39:34.000Z. Sources: 4. Developments: 2. 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. ## Timeline ### 2026-08-16: New Zealand retail and services sectors show signs of growth New Zealand's apparel spending rose 1.1% in July, while the services sector maintained expansion with a PSI of 50.6, despite ongoing concerns regarding employment and hiring. 4 sources. https://clstr.news/cluster/new-zealand-retail-and-services-sectors-show-signs-of-growth ### 2026-08-03: New Zealand retail wages ease as SME hiring rises modestly Retail NZ reports a 1 % rise in average retail wages to NZ$30.94, slowing from 3.4 % last year, while Employment Hero shows SME employment grew 0.5 % in May despite annual wages flatlining at zero. 2 sources. https://clstr.news/cluster/new-zealand-retail-wages-ease-as-sme-hiring-rises-modestly --- Cite as: New Zealand retail and services sector trends. CLSTR, https://clstr.news/situations/new-zealand-retail-and-services-sector-trends