Kiwis relying more on credit cards

A suggestion consumer spending is recovering - but essential costs are leaving less for the fun stuff.

Kiwibank research reveals more than 71 percent of card transactions in August was on credit cards - the highest share since records began in 2002.

A decade ago, credit cards made up less than half of card spending.

Independent economist Cameron Bagrie told Ryan Bridge power bills and rates are eating into disposable income.

He says there's a structural shift underway, with more money going towards essential costs and less into the retail sector.