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A damp start to the year has flowed through to consumer spending, while weak business confidence is driving down the demand for credit.
Payment service network Worldline NZ's chief sales officer Bruce Proffit indicated consumer spending at core retail merchants fell 0.7 percent last month over the year earlier, amid a gloomy economic outlook and a number of bad weather events in some parts of the country.
"The stormy weather that occurred at each end of the month - Cyclone Hale and then the deluges across the upper North Island and especially in Auckland - is undoubtedly one factor, but the general nature of the dampened spending also suggests a trend towards wider restraint by consumers."
Equifax's December quarter Business Credit Demand Index also fell 1.7 percent over the year earlier with some sectors more cautious than others.
Construction, rental, hiring and real estate sectors saw a drop in overall credit demand, while others were more positive with increased demand for credit from agriculture, accommodation, food services, retail and wholesale trade sectors.
Equifax managing director Angus Luffman said there was an increase in demand for trade credit, which was often used to support cash flow.
"While we typically see trade credit used for purposes such as cash flow management, increasing purchasing power and cost savings, in periods of uncertainty, there may be increasing use of this funding line to support income shortfalls.
"However, we're not currently seeing evidence of market-wide strain in credit arrears."