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Low New Zealand Retail Sales takes Economists by Surprise


14 April 2008

Figures from the Statistics New Zealand Retail Trade Survey for February 2008 have shown a 0.7% ($42 million) decrease compared with January 2008. The median prediction in a Reuters poll showed expectations of a 0.3% increase.

This fall is largely due to a 5.8% ($41 million) decrease in motor vehicle retailing.  This decrease in motor vehicle retailing follows decreases from January and December of 0.6% and 2.5% respectively.

Excluding the four vehicle-related industries, the core retail sales trend has risen 0.2% ($7 million). This was lifted by a 1.6% (19 million) increase in supermarket and grocery store sales. The Food Price Index shows that food prices have risen 3.2% since September 2007.

After motor vehicle retailing and supermarket and grocery stores, bars and clubs provided the next biggest change with a 6% decrease ($6 million), and automotive repair and services nec, down 3.3% ($6 million).


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