New Zealand: Retail sales close to market expectations – Westpac

Retail sales rose by 0.7% in the December quarter. The result was below our forecast but close to market expectations, economists at Westpac Institutional Bank inform. Market reaction to the release was muted.

Key quotes

“Retail spending rose by 0.7% in the December quarter. That was below our forecast, but close to the average market forecast for a 0.8% rise.”

“Price growth in the retail sector remains muted. Total prices were up 0.4% over the quarter, and flat over the past year. Core (ex-fuel prices) have been a bit stronger, rising 0.6% in the December quarter and 0.7% over the past year.”

“Today’s result signals some downside risk to our forecast for 0.6% growth in December quarter GDP. We’ll firm up that number as other partial indicators are released over the next couple of weeks.”

“There was very little response to today’s data in either the NZ dollar or interest rate markets.”