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

 


UPDATE: NZ retail sales rise 1.2% in second quarter

UPDATE: NZ retail sales rise 1.2% in second quarter, led by demand for vehicles

(Adds economist comment in fourth paragraph)

By Tina Morrison

Aug. 14 (BusinessDesk) - New Zealand retail sales rose more than expected in the second quarter, as vehicle sales volumes and values increased at the fastest pace in two years.

The volume of retail sales rose a seasonally adjusted 1.2 percent in the three months through June, from an upwardly revised 0.8 percent in the first quarter, according to Statistics New Zealand. That’s more than the 1 percent expected in a Reuters poll of economists. The New Zealand dollar climbed as high as 84.88 US cents from 84.63 cents immediately before the numbers were released.

Retail sales are increasing amid upbeat consumer confidence in an expanding economy. The Reserve Bank last month said the economy is expected to grow at an annual average rate of 3.7 percent this year, from a 2.9 percent pace in 2013. New Zealand interest rates are expected to resume their upward path next year following a "period of assessment" after the central bank last month raised the rate at its fourth consecutive meeting to 3.5 percent.

"Overall spending continues to rise, supported by population growth, an improving labour market and strong consumer confidence," Nathan Penny, rural economist at ASB Bank, said in a note. "On the inflation front, prices in the retail sector remain soft, with prices continuing to fall across a broad range of goods."

ASB expects the central bank to resume hiking rates again in March next year, Penny said.

In the second quarter, 11 of the 15 retail industries had higher sales volumes. Motor vehicle and parts retailing recorded the largest volume increase, up 3.6 percent, as the sales value gained 2.9 percent and prices fell 0.7 percent, Statistics New Zealand said.

Motor Industry Association figures show sales of new passenger and commercial vehicles tallied 62,200 in the first half of this year, suggesting annual sales of 124,400, exceeding the previous annual record of 123,247 set in 1984.

Other retail industries which posted large volume gains in the quarter included accommodation, up 6 percent, electrical and electronic goods retailing up 2.9 percent and food and beverage sales up 2.7 percent, Statistics NZ said.

The industries with the largest falls in the quarter were fuel, down 3.3 percent, and clothing, footwear and accessories retailing, down 2.2 percent, the agency said.

Actual retail sales were up 3.8 percent in value from the same quarter a year earlier, ahead of the 3.4 percent estimate in the Reuters survey.

Excluding fuel and vehicle related spending, core retail sale volumes in the second quarter rose a seasonally adjusted 1.2 percent, following a 1 percent rise in the first quarter.

Sales of motor vehicles, parts and fuel aren’t currently seasonally adjusted although the statistics agency said it may provide figures on this basis from the third quarter.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news