Retail spending shows gradual recovery

Retail sales edged up a seasonally and inflation-adjusted 0.1 per cent in the September quarter.

The figure was slightly ahead of the median forecast for no change from economists in a Reuters poll.

By far the major contributor to the rise in volumes in the September quarter were appliances, up 6.5 per cent, followed by a 3.8 per cent rise in clothing and softgoods, while accommodation rose 3.1 per cent.

Offsetting those rises, vehicle volumes dropped 2 per cent, and department store sales volumes fell 3.1 per cent.

When just seasonally adjusted, retail sales were up 0.5 per cent in the September quarter.

ASB chief economist Nick Tuffley said retail spending was gradually recovering from a long string of declines, but it was a slow recovery.

"Householders aren't rushing out to spend with great vigour," he said.

Deutsche Bank chief economist Darren Gibbs said it looked as if consumers were still paying down debt, despite feeling more confident about the outlook.

Seasonally adjusted retail sales for the September month rose 0.2 per cent, as supermarket and grocery store sales lifted 1.1 per cent or $15 million from August, clothing and softgoods were up 3.8 per cent or $9m, vehicle sales rose 2 per cent or $11m, automotive fuel sales lifted 1.6 per cent or $8m, and appliances were up 3.6 per cent or $8m.

Hardware sales fell 7.7 per cent or $10m for the month, and fresh produce was down 6.9 per cent or $6m.

The 0.1 per cent lift in seasonally adjusted volumes came after a 0.5 per cent gain in the June quarter, which followed four consecutive quarters of declines culminating in a 2.8 per cent fall in the March quarter.

Core retail sales volumes, which exclude the four vehicle-related industries, rose 0.5 per cent in the September quarter, having risen 0.3 per cent in the previous three months.

The 0.5 per cent, or $82m, rise in retail sales when just seasonally adjusted, followed a 1.1 per cent lift in the June quarter, preceded by four quarters of decreases.

The value of core retail sales lifted 0.6 per cent or $69m in the latest quarter, during which 14 of the 24 retail industries covered recorded increased sales, SNZ said.

Supermarket and grocery stores recorded the largest rises, up 1.1 per cent or $41m, with appliance retailing up 5.1 per cent or $32m, vehicle retailing up 1.9 per cent or $31m, and clothing and softgoods up 4.5 per cent or $29m.

Automotive fuel sales had the largest fall, dropping 2.5 per cent or $38m, with department stores down 3.2 per cent or $30m, and cafes and restaurants down 2.6 per cent or $26m.

The value of actual retail sales in the September quarter was $15.8 billion, down 1 per cent from a year earlier. The volume of actual retail sales, expressed in September 1995 quarter prices, was $13.2b, down 2.9 per cent from a year earlier.

- NZPA WGT mjd kn



NZ RETAIL SALES VOLUMES, SEAS/ADJ EDGE UP IN SEPTEMBER QUARTER

(ADDS DETAILS)

Wellington, Nov 12 NZPA - Retail sales edged up a seasonally and inflation-adjusted 0.1 per cent in the September quarter.

The figure, published by Statistics New Zealand (SNZ) today, was slightly ahead of the median forecast for no change from economists in a Reuters poll.

By far the major contributor to the rise in volumes in the September quarter were appliances, up 6.5 per cent, followed by a 3.8 per cent rise in clothing and softgoods, while accommodation rose 3.1 per cent.

Offsetting those rises, vehicle volumes dropped 2 per cent, and department store sales volumes fell 3.1 per cent.

When just seasonally adjusted, retail sales were up 0.5 per cent in the September quarter.

ASB chief economist Nick Tuffley said retail spending was gradually recovering from a long string of declines, but it was a slow recovery.

"Householders aren't rushing out to spend with great vigour," he said.

Deutsche Bank chief economist Darren Gibbs said it looked as if consumers were still paying down debt, despite feeling more confident about the outlook.

Seasonally adjusted retail sales for the September month rose 0.2 per cent, as supermarket and grocery store sales lifted 1.1 per cent or $15 million from August, clothing and softgoods were up 3.8 per cent or $9m, vehicle sales rose 2 per cent or $11m, automotive fuel sales lifted 1.6 per cent or $8m, and appliances were up 3.6 per cent or $8m.

Hardware sales fell 7.7 per cent or $10m for the month, and fresh produce was down 6.9 per cent or $6m.

The 0.1 per cent lift in seasonally adjusted volumes came after a 0.5 per cent gain in the June quarter, which followed four consecutive quarters of declines culminating in a 2.8 per cent fall in the March quarter.

Core retail sales volumes, which exclude the four vehicle-related industries, rose 0.5 per cent in the September quarter, having risen 0.3 per cent in the previous three months.

The 0.5 per cent, or $82m, rise in retail sales when just seasonally adjusted, followed a 1.1 per cent lift in the June quarter, preceded by four quarters of decreases.

The value of core retail sales lifted 0.6 per cent or $69m in the latest quarter, during which 14 of the 24 retail industries covered recorded increased sales, SNZ said.

Supermarket and grocery stores recorded the largest rises, up 1.1 per cent or $41m, with appliance retailing up 5.1 per cent or $32m, vehicle retailing up 1.9 per cent or $31m, and clothing and softgoods up 4.5 per cent or $29m.

Automotive fuel sales had the largest fall, dropping 2.5 per cent or $38m, with department stores down 3.2 per cent or $30m, and cafes and restaurants down 2.6 per cent or $26m.

The value of actual retail sales in the September quarter was $15.8 billion, down 1 per cent from a year earlier. The volume of actual retail sales, expressed in September 1995 quarter prices, was $13.2b, down 2.9 per cent from a year earlier.

- NZPA