Long, hot summer saps consumer appetite to buy more clothing.

The New Zealand dollar jumps as high as 85.15 US cents after the report.

Retail sales fell 0.7% last month, according to the latest electronic transactions data.

Core retail sales in the December quarter showed the largest rise since 1995. 

Latest retail sales figures have come out at double the average market forecast and show the largest quarterly rise since December 2006, at the height of the mid-decade debt binge.

The value of electronic card spending in retail industries increased 1.2 percent in June 2011 on a seasonally adjusted basis on the back of increased transaction value in all retail industries except fuel.