WELLINGTON – New Zealand’s retail sector displayed unexpected stability in the third quarter of 2023, with official figures showing no change in overall retail sales compared to the previous quarter, countering analysts’ predictions of a 0.8% decline. This flat growth rate comes despite varying performance across different segments, according to data released today.
Stats NZ provided a detailed breakdown of the quarter’s retail activity, highlighting several areas of growth that bolstered the sector against weaker spots. Notably, clothing sales saw a significant uptick of 4%, and food services enjoyed an increase of 1.9%. Supermarket and grocery store revenues also rose by 1.7%, with hardware, building, and garden supplies registering a 2.6% gain in value terms for September, reflecting seasonally adjusted improvements.
Contrasting these positive figures were the motor vehicle and parts retailers, which experienced a 2.9% dip in sales volume. Fuel retailing also faced challenges with declining volumes but managed to increase in value by 7% due to price fluctuations. These sectors’ performances had a dampening effect on the overall retail sales figures when excluding automobiles and transport-related expenses. In the previous quarter, these categories each fell 3.4% in volume terms but displayed mixed results in value adjustments.
The currency market’s reaction to this mixed bag of retail data was subdued, with the New Zealand dollar trading near $0.6050 against its US counterpart following the release of the statistics. The resilience seen in certain consumer spending areas suggests underlying strength in New Zealand’s domestic economy, even as some sectors struggle against headwinds.
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