-
Source: ONE News -
Watch Video
-
Related
There has been little change in seasonally adjusted total retail sales, according to the latest figures from Statistics New Zealand.
For the month of February, there was a 0.2% rise in total retail sales compared with January. This continues a trend since December 2007 of flat or declined total retail sales.
However, ASB economist Jane Turner says the figure is slightly better than the market expectation of -0.5% and the ASB forecast of 0.0%.
"Retail spending continues to evolve in line with our expectations of ongoing weakness, although retail activity will be relatively flat over 2009 in comparison to the drag on economic activity it was throughout 2008," says Turner.
The biggest increase in February sales was seen in fuel retailing which was up 6.7% or $34 million after four consecutive months of decline.
Excluding vehicle related industries, supermarket and grocery store figures which were up 1.2% or $12 million. Statistics New Zealand says this continues a steady rise since September 1995, with just two periods of slight decline in mid-2004 and mid-2008.
The largest declines for February were recorded in recreational goods retailing - down 4.9% or $10 million - and accommodation which was down 4.2% or $9 million.
The decline in motor vehicle retailing sales - which has dropped 27.1% since August 2007 - took less of a hit in February, falling 3.2% or $17 million compared with 12% in January.
But despite an ease in the decline, Statistics New Zealand says the trend for motor retailing is now at its lowest level since January 2001. Coupled with fewer car registrations the ASB expects further weakness.
Market analyst Charles Abraham says the Reserve Bank will take these retail figures into account when it reconsiders the official cash rate at the end of the month.
The ASB is picking a 50 basis point cut on April 30 in response
to the deteriorating business confidence, a strong New Zealand
dollar and rising interest rates.
