Retail figures not good but there is some light

Media release

Newmarket Business Association

Thursday, 15 May 2008

Retail figures not good but there is some light

Auckland’s leading retailing district says while Statistics New Zealand's latest retail figures don't make good reading there is some light at the end of the tunnel.

“Let's not forget the two main political parties are promising tax cuts that could be worth up to $2 billion with more money in people’s hands from as early as late this year or April next year," said Cameron Brewer, general manager of the Newmarket Business Association.

Furthermore, last month Fonterra announced a 40 percent increase its 2007/08 milksolids payout for its over 11,000 dairy farmers. The forecast payout for the 2008/09 season, due out this month, is expected to hold its ground.”

Mr Brewer said it was also important to note that recently a couple of banks released business outlook surveys for April which showed while business gloom remains it has in fact lifted somewhat in some key areas. He says interestingly the pundits are not forecasting a technical recession, which is two quarters of a shrinking economy, but rather a slowing growth rate, albeit around one percent.

“There are some positive things out there which need to be considered when we’re hearing all the bad news. What's more, economists are now predicting the Reserve Bank to cut interest rates sooner rather later which will boost homeowners’ budgets. "

“It is a tough environment for retailers and business at the moment, but let’s keep focused on the light at the end of the tunnel and the fact that we have strong economic foundations in place to weather the storm and come back even stronger."

ENDS

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