"A record increase in the food and beverage services industry topped off the widespread rise of consumer spending, with increased sales in 12 of the 15 industries for the June quarter,"
- Blair Cardno, industry and labor statistics manager
New Zealand retail sales rose faster-than-expected in the second quarter, led by record gain in bars and restaurants, adding to signs that while interest rates will remain unchanged at a record low level throughout this year, they are likely to start rising in 2014. The total volume of retail sales jumped to a seasonally adjusted 1.7% compared to forecasts for an advance of 1.5% after the 0.5% rise in the January-March period. Spending on food and beverages climbed 4.5% to $1.8 billion in the three months through June. There were also solid increases in department store sales, hardware, electrical goods, building supplies, vehicle sales and servicing. According to Statistics New Zealand, core retailing industries, which strip out vehicle-related industries, recorded a 2.3% quarterly gain compared to 0.6% in the preceding month, marking the biggest advance since the last three-month period of 2006.
Other reports showed a pickup in the housing market, with prices at record levels, due to a tight supply, a lift in manufacturing and services activity, improvement in the building sector and strong consumer and business confidence. The recent positive data indicates a modest economic growth and limited price pressures, which would allow the nation's central bank to keep its cash rate at 2.5% for the rest of the year.
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