NZ: Weaker than expected retail spending in June - Westpac

Satish Ranchhod, senior economist at Westpac, points out that the New Zealand’s retail spending was weaker than expected in June, with spending levels flat over the month (vs. expectations for a 0.7% increase).

Key Quotes

“Contributing to the flat June spending result was a fall in petrol prices over the month that capped nominal spending levels.”

“For many households, that fall in petrol prices would have freed up funds for spending in other areas. In fact, core (ex-fuel) spending posted a moderate 0.4% rise over the month. That included an increase in spending on durable items and clothing.”

“Looking at the June quarter as a whole, spending levels were only up 0.2%. That’s a fairly modest gain, especially as some of that increase will relate to price changes.”

“This reinforces the picture of softness in New Zealand economic activity through the June quarter that has been alluded to in recent business surveys.”