- Westpac Banking Corp
New Zealand first-quarter retail sales volumes rose at the slowest pace for three quarters, against economist expectations. According to Statistics New Zealand, the volume of retail sales climbed a seasonally adjusted 0.8% in the first quarter, up from the three months through December. That fell short of economists forecast for a 1% gain. Retail sales volumes for the December quarter were revised lower to 1.1% from 1.2%. Core retail volumes, which strip out the more volatile vehicle-related industries, advanced 1% in the March quarter.
Electronic goods sales surged 3.8%, while clothing, footwear, and accessories sales increased 1.7%. The steep rise in sales under these categories suggest the strength of the New Zealand Dollar is making imported goods more attractive to consumers, given that the country imports most of its electronics and apparel. Offsetting these gains was a 3.8% decrease in specialized food retailing, and a small drop in home and garden related sales. Nevertheless, the lift in retail spending last quarter suggests the upbeat tone of consumer sentiment in New Zealand amid weak inflationary settings and an environment of record-low interest rates. Last month the Reserve Bank of New Zealand kept interest rates on hold after trimming the Official Cash Rate to a record-low 2.25% in March.
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