New Zealand: Retail sales unexpectedly drop in Q3
November 14, 2012
In the third quarter, retail sales dropped a seasonally adjusted 0.4% over the previous quarter, which contrasted both the 1.3% rise recorded in the second quarter and market expectations, which had retail sales growing 0.4%. Compared to the same period a year ago, retail sales decelerated from a 4.8% increase in the second quarter to a 4.3% expansion in the third. According to the statistical office, the contraction was mainly the result of a drop in sales of fuel (-1.9% quarter-on-quarter) and motor vehicles and parts (-1.8% qoq). In addition, the reading reflected a broad-based deterioration in core retail sales (which exclude vehicle-related sales), particularly sales of electrical and electronic goods as well as recreational goods.
Author: Ricardo Aceves, Senior Economist