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Satish Ranchhod, analyst at Westpac, notes that the New Zealand’s retail spending rose by 0.6% in April and was lower than what the Westpac or analysts more generally had expected.

Key Quotes

“In annual terms, spending was up 4.5% over the past year.”

“Spending in April was dampened by increases in fuel prices that siphoned money out of households’ wallets and constrained spending in other areas. The result may also have been affected by the close timing of the Easter and ANZAC Day holidays.”

“Looking at the details of the April result more closely, we saw gains in most categories, with durables spending reaccelerating after earlier weakness.”

“Over the year ahead, we expect to see continued moderate growth in retail spending. That will be supported by growth in nominal incomes, increases in government spending and low mortgage rates.”