could be a slower Christmas for retailers, but the situation should turn around next year

Latest Stats NZ figures show card spending was 5.6 percent lower in September, and 1.1 percent lower in October, than the same months last year.

ASB Chief Economist Nick Tuffley says while there is still caution in the short term.

But he's forecasting a lift in spending, in the new year, as falling interest rates result in people having more disposable income to spend.