New Zealand: Retail sales bounce back in November
January 21, 2011
In November, nominal retail sales expanded 1.5% over the previous month in seasonally adjusted terms. The figure contrasted the revised 2.4% contraction observed in October (previously reported: -2.5%) and overshot market expectations, which saw retail sales expanding 1.1%. The monthly rise was broad-based, as 11 out of the 15 categories of the retail sales index registered higher sales over the previous month. In particular, motor vehicle sales (+11.8 month-on-month) and fuel (+3.6% mom) reported higher sales. On an annual basis, retail sales expanded 2.5% in November, which was well above the previous month's 0.6% increase. Despite the November improvement, the trend points to a faltering recovery, with the annual average variation in retail sales edging down from 3.8% in October to 3.7% in November, reversing the upward trend that began in October 2009.
Author: Ricardo Aceves, Senior Economist