Hospitality spending, which was down 2.7 per cent in February, rose 2.1 per cent while apparel spending, down 2 per cent in February, jumped 2.6 per cent.
"The largest spending component, consumables, rose 0.5 per cent, continuing the recent trend of steady growth," Smith said.
"Meanwhile spending on durables fell 0.6 per cent. This may represent some payback following steady growth in spending on durables over the second half of last year, but we expect increasing housing market activity will support sales of durable goods over 2012." Goldman Sachs economist Philip Borkin noted that Statistics New Zealand's estimate of the trend rate of growth in spending via electronic cards was just 0.1 per cent a month.
That was tepid, he said, especially in light of recent increases in petrol and food prices.
Smith said that with a modest rate of economic recovery and household debt still high, growth in retail spending would continue to be gradual.
"We do not see this sector as a source of inflationary pressure in the near term. We continue to expect the official cash rate to be left on hold until the end of the year," he said.