Retail sales growth slows in first quarter, missing estimates
The volume of retail sales increased a seasonally adjusted 0.8% in the three months through March from the December quarter.
New Zealand first-quarter retail sales volumes rose at the slowest pace for three quarters, missing economist expectations.
The volume of retail sales increased a seasonally adjusted 0.8% in the three months through March from the December quarter, Statistics NZ said. That lags behind the 1% forecast in a Reuters poll of economists. Retail sales volumes for the December quarter were revised lower to 1.1% from 1.2%. Core retail volumes, which excludes the more volatile vehicle-related industries, increased 1% in the March quarter, the agency said.
Some 11 of the 15 industries had higher sales volumes in the latest quarter, with the largest increased in electrical and electronic goods retailing, which grew 3.8%, online and commission-based retailing which gained 10%, food, and beverage services up 1.3%, and clothing, footwear and accessories ahead 1.7%. That was offset by a 3.8% decline in specialised food retailing and a 0.6% fall in liquor sales.
"Following solid gains through the latter part of 2015, retail spending growth eased off a bit in early 2016," Westpac Banking Corp senior economist Satish Ranchhod said in a note. "The moderation in retail sales growth in early 2016 isn't too surprising. Late 2015 saw strong growth in spending on durable items such as hardware and furnishings, and it's normal to subsequently see a bit of a softening."
Westpac's Ranchhod said the report highlighted that inflation in the economy remains subdued.
On an unadjusted basis, the volume of retail spending rose 4.8% in the March quarter, compared with the same quarter in 2015. That's ahead of the 3.9% gain expected in the Reuters poll of economists.
The value of actual retail sales increased 4.7% to $20.16 billion.
Stripping out vehicle-related spending, the volume of core retail sales rose 4.7%, while the value gained 5.1%.
Retailers' inventories were 3% high at $7.23 billion at March 31 compared with the year earlier, with core retail stocks up 3.2%.
(BusinessDesk)
Tina Morrison
Fri, 13 May 2016
Fri, 13 May 2016
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Retail sales growth slows in first quarter, missing estimates
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