NZ: Retail spending rose by 1.6% in 3Q – Westpac

Satish Ranchhod, senior economist at Westpac, points out that New Zealand’s retail spending rose by 1.6% in the September quarter and was a little above our forecast for a 1.4% rise and well above the average market forecast for a 0.5% gain.

Key Quotes

“Today’s result supports our view that New Zealand’s economic cycle is starting to turn, with the pickup in the housing market an important boost for spending appetites.”

“We expect to see retail spending levels continuing to rise over the coming year, supported by low interest rates and increases in Government spending.”

“Retail price growth remains muted.”