Retail sales volumes rise at fastest pace in a decade in the second quarter

New Zealand second-quarter retail sales volumes rose at the fastest pace in close to a decade, beating economist expectations.

The volume of retail sales increased a seasonally adjusted 2.3 percent in the three months through June from the March quarter, the biggest percentage increase since the December 2006 quarter, Statistics New Zealand said. That's ahead of the 0.9 percent forecast in a Reuters poll of economists. Retail sales volumes for the March quarter were revised up to 1 percent from 0.8 percent. Core retail volumes, which excludes the more volatile vehicle-related industries, increased 2.6 percent in the June quarter, the agency said.

The country's retail sector posted gains across 12 of the 15 industries. Retail spending has picked up the pace as the country's population grew at its fastest ever pace in the year through June, tourism is at an all-time high, and as record low interest rates and an elevated currency stoke demand. The hardware, building and garden supplies industry had the largest volume and value sales increase in the latest quarter.

"Consumer spending is humming along, with DIY and trade staff customers boosting sales in the hardware and building supply trades," Statistics NZ business indicators senior manager Neil Kelly said, noting that demand was particularly strong in the Auckland region.

Volumes of hardware, building and garden supplies rose 5 percent, motor-vehicle and parts retailing gained 2.6 percent, pharmaceutical and other store-based retailing increased 5.2 percent and food and beverage services advanced 3.3 percent, the agency said. The biggest declines were in fuel retailing, which slipped 1 percent, and recreational goods, which dropped 3.3 percent.

On an annual basis, the quarterly value of actual retail sales rose 5.5 percent to $19.9 billion, while the volume rose 6 percent, the data showed.

Retailers' inventories were 4.6 percent higher at $7.2 billion at June 30 compared with the year earlier, with core retail stocks up 5.1 percent, the agency said.

(BusinessDesk)

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