Satish Ranchhod, senior economist at Westpac, points out that the New Zealand’s retail spending was much stronger than expected in the December quarter as the volume of goods sold rose by 1.7%, well above their forecast for a 0.7% rise and the average analyst forecast for a 0.5% gain.
Key Quotes
“A key reason for the strong December quarter rise in spending was the sharp drop in petrol prices.”
“Earlier petrol price rises syphoned at least $130 million out of households’ wallets between July and October. That offset a good chunk of the boost to demand from the Government’s Families Package, and resulted in only muted spending growth in the September quarter. But with petrol prices falling sharply in late 2018, households have been hitting the stores again.”
“The December quarter saw gains in most retail categories, including large gains in areas like supermarkets and dining out. That saw core (ex-fuel spending) volumes rising by 2% over the quarter.”
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