New Zealand retail activity had a storming start to the year, but electronic card spending data point to a sharp slowdown since. A 0.1% lift in both volumes and values are expected in the June quarter. This would add to the recent evidence that the New Zealand economy has cooled. Falling petrol prices boosted consumers' purchasing power in the March quarter, but have since recovered significant ground. Looking through this volatility, retail trade grew at a healthy pace through the first half of the year.
"We are braced for a deeper slowdown in the second half of the year, as concerns around dairy prices increasingly weigh on domestic spending," notes Westpac Research
