New Zealand: Retail sales moderate in Q1
May 14, 2014
Retail sales expanded a seasonally-adjusted 0.7% over the previous quarter in Q1. The reading came in below the revised 1.4% increase tallied in Q4 (previously reported: +1.2% quarter-on-quarter) and fell short of the 0.9% expansion the market had expected.
According to the statistical office, “ten of the 15 retail industries had higher sales volumes in this latest quarter.” Q1's expansion mainly reflected an increase in electrical and electronic goods (Q1: +5.5% quarter-on-quarter), in hardware, building and garden supplies (Q1: +2.0% qoq) as well as in food and beverage services (Q1: +1.5% qoq).
Compared to the same period of the previous year, retail sales inched down from a 3.9% increase in Q4 to a 3.8% expansion in Q1, which marked the lowest annual gain since Q1 2013.
FocusEconomics Consensus forecast participants expect private consumption to expand 3.1% in 2014, which is unchanged from last month's projection. For 2015, the panel sees private consumption increasing 2.5%.
Author: Armando Ciccarelli, Head of Data Solutions