Latest figures from electronic transaction company Paymark show spending is up in the region, but discretionary spending across New Zealand is slowing.

Spending across the Bay of Plenty in March 2011 increased $16 million compared to March last year.

There was a total of 4.8 million transactions across the region in March, generating a total of $247 million.

Figures also show that while the value of transactions through its network increased 4.2 per cent year-on-year during March, Kiwis' discretionary spending on goods has dropped to below-year-ago levels for the second month running.

Mount Mainstreet manager Leanne Brown says the retail sector is starting to slow down as winter approaches.

She is trying to entice more people to shop in downtown Mount Maunganui during winter.

'It's still a fantastic place to visit in the middle of winter. You just need a coat,” says Leanne.

With the Christchurch earthquake and Japanese tsunami, she predicts this winter will be tough economically.

'We're always hopeful it will be better than last year – summer was good, it was up, but so many things factor into winter.”