Further Increase in Wholesaling Activity

Wholesale Trade Survey: June 2000 quarter

Further Increase in Wholesaling Activity

The value of wholesale sales increased 3.1 percent in the June 2000 quarter, according to latest figures released by Statistics New Zealand. There have now been five consecutive quarters of growth, and a 16.2 per cent rise in sales since March last year.

Wholesale growth was broad-based in the June 2000 quarter. Primary product food sales made a significant contribution to the increase as they continued to benefit from improved dairy and fruit exports. Sales for this storetype have now exceeded those achieved in the December 1998 quarter, before the drought induced contraction. The value of petroleum sales also made a significant contribution to the increase, continuing to surge following a further increase in crude oil prices and falls in the value of the New Zealand dollar.

Stock values rose by $171 million this quater. Over half of this increase was due to the rise in petroleum stock values. There was also an increase in the value of motor vehicle stocks. Even though the trend in the number of passenger vehicles imported has been falling since September 1999, stock levels remain higher than a year ago.

Price and volume have both driven the growth in wholesale activity since March 1999. The low exchange rate, rising commodity prices and increasing input costs have put upward pressure on prices. Meanwhile, primary production volumes have increased following an excellent growing season, and a pick-up in demand from some key markets.

Ian Ewing DEPUTY GOVERNMENT STATISTICIAN END

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