New Zealand: Growth in retail sales moderates further in Q1
May 13, 2016
Retail sales expanded a seasonally-adjusted 0.8% in Q1 2016 over the previous quarter. The reading came in below the revised 1.1% increase registered in Q4 2015 (previously reported: +1.2% quarter-on-quarter) and fell short of the 1.0% increase the markets had expected.
According to the statistical office, Q1’s increase was the result of higher sales of electrical and electronic goods. The statistical office also commented that 11 of the 15 items that compose the overall index of retail sales saw an increase compared to the previous quarter. Moreover, a decrease in sales of specialized food and liquors acted as drag to growth in Q1.
Compared to the same quarter last year, retail sales increased 4.8% in Q1, which was down from the 5.3% expansion registered in Q4 and marked the slowest annual rise since Q3 2014.
Author: Ricardo Aceves, Senior Economist