Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ retail sales unexpected fall in 3Q; kiwi dollar drops

NZ retail sales unexpected fall in third quarter; kiwi dollar drops

Nov. 14 (BusinessDesk) – New Zealand retail sales volumes unexpectedly fell in the third quarter, led by supermarkets and motor vehicles, sending the kiwi dollar lower on speculation the economy is weak enough to warrant a rate cut from the Reserve Bank next month.

The volume of retail sales fell 0.4 percent, seasonally adjusted, in the three months ended Sept. 30, for a 2.1 percent gain from a year earlier, according to Statistics New Zealand. A quarterly gain of 0.5 percent was forecast in a Reuters survey, for an annual increase of 2.9 percent.

The third quarter retail sales data comes after figures showed the jobless rate unexpectedly jumped to 7.3 percent, suggesting the economy’s pace is stumbling. Reserve Bank governor Graeme Wheeler has said he has room to cut interest rates if needed and his next review is on Dec. 6. Markets were pricing in a 24 percent chance of a cut to the official cash rate next month.

The kiwi dollar dropped to 81.54 US cents after the numbers, from 81.91 cents immediately before the report was released.

Nine of the 15 retail industries had lower sales volumes in the latest quarter. Excluding auto-related categories, retail sales volumes were down 0.3 percent. The value of sales fell 0.8 percent.

Supermarket and grocery store sales fell 1.5 percent, accommodation was down 3.2 percent and motor vehicles and auto parts fell 0.9 percent.

Hardware, building and garden supplies recorded the biggest gain, up 4.2 percent, which the government statistician said reflected increased sales in Canterbury.

The value of sales in the North Island fell 0.4 percent in the latest quarter while South Island sales rose 0.7 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news