Total retail spending in New Zealand continued to chug along in July. According to Statistics New Zealand, total retail spending using electronic cards reached NZD 4.8 billion in July 2016, up 5.8 percent year-on-year. Most of the rise was concentrated in hospitality industry that rose 18 percent. Fuel industry was the exception that recorded a decline of 8.6 percent.
“People spent more on accommodation and on food and drinks in restaurants and takeaway shops. In contrast, they spent less on fuel, with petrol prices falling about 10 cents a litre in July," said Statistics New Zealand Business Indicators Senior Manager Neil Kelly.
Retail spending on electronic cards, on seasonally adjusted basis, rose 0.3 percent month-on-month in July. July’s data came in slightly firmer than consensus projection. Even if it is a slowdown from June’s 1.2 percent rise, the underlying scenario is widely unchanged, said ANZ in a research report.
There was a mixed picture throughout the components. On month-on-month basis, hospitality spending rose 2.9 percent after June’s rise of 2.4 percent. Core retail spending, which excludes the vehicle-related industries, was up 0.7 percent month-on-month, following a sequential gain of 1.1 percent in June. Annual sales growth was 7.9 percent year-on-year, whereas quarterly growth remained at 1.3 percent.
Elsewhere, consumables spending grew 0.5 percent on month-on-month basis, whereas durables and apparel spending recorded a drop of 0.3 percent and 1.9 percent on sequential basis respectively. Meanwhile, fuel retailing fell 3.6 percent month-on-month on back of the decline in petrol price falls.
The upcoming release of Retail Trade Survey for the second quarter is likely to provide a complete picture. Sales volume growth is expected to turn out reasonably good around 1 percent quarter-on-quarter, according to ANZ.
