NZ retail sales fuelled by gasoline prices
New Zealand's retail sales bounced 2%m/m in November (JPMorgan 0.9%, consensus 0.7%), thanks to a 9% surge in fuel
retailing. The strong November bounce followed a 0.6%m/m dip in sales over the month of October.
The annual rate of retail spending is now running at 6.7%oya (the fastest pace since March 2007). Core retail sales
(excluding the four vehicle-related industries) rose a stronger than expected 0.9%m/m. Today's retail report, however,
has little implications for next week's RBNZ OCR announcement, as the strong rebound was both petrol induced and payback
for the previous month's decline.
According to the survey, only 14 of the 24 industries covered recorded increased sales in November. The largest
contributions came from automotive fuel retailing (up 9%), motor vehicle retailing (up 4.3%), supermarket and grocery
stores (up 1.6%), and cafes and restaurants (up 3%). Of the ten industries recording decreased sales this month, the
largest fall was in furniture and floor coverings, down 5.3%. Department store sales were also down 1.5%. This report
does not suggest consumers are piling into the shops and spending up large, as a number of the more discretionary areas
of retailing - department stores, liquor, other food, takeaway, furniture, recreational goods, and other personal
services - all fell over the month.
ENDS