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

 

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:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news