Retail sales fell in October after a pre-GST rise in September, according to Statistics New Zealand's Retail Trade Survey.The value of seasonally adjusted total retail sales fell 2.5% ($137 million) in October, following a 1.7% rise in September.Core reta
Retail sales fell in October after a pre-GST rise in September, according to Statistics New Zealand’s Retail Trade Survey.
The value of seasonally adjusted total retail sales fell 2.5% ($137 million) in October, following a 1.7% rise in September.
Core retail sales (which exclude the motor vehicle-related industries) were down 1.6% ($71 million) reversing the 1.7% ($72 million) increase in September.
The figures are worse than economists predicted, with a consensus market forecast for only 0.6% drop in core retail sales.
And the GST rise on October 1 has been given much of the blame for the drop in sales.
“It was noticeable that the industries that sell big-ticket items recorded increased sales in September, but had the largest decreases in October,” business statistics manager Louise Holmes-Oliver said.
Ten of the 15 industries had decreases, with the largest being motor vehicles and parts, down 12.6% ($85 million).
Furniture, floor coverings, houseware and textiles, plunged by 27.8% ($47 million) while electrical and electronic goods were down 15.2% ($34 million).
The largest increase was in supermarket and grocery stores, up 4.2% ($58 million). All the food and drink related industries recorded increases.
The sales trend for total retail has been rising since February 2009, up 6.6% since then, while the sales trend for core retail has been rising since February this year, up 2.3% since then.
The Retail Trade Survey excludes GST.
