Retail Sales In New Zealand Rose More Than Forecasts In January

Retails sales in New Zealand rose for the fifth time in the last six months alongside rising consumer confidence that reached the highest level in three years. Today's report is adding to forecasts that retail sales will be leading the nation's recovery in the first quarter of this year.

New Zealand economy released today the retail sales for January showing an incline by 0.8%, higher than the previous reading of 0.0% that was revised from -0.4%, after fuel sales was revised lower to NZ$22 billion ( 15$ million ). Yet, retail sales came better than analysts' forecast of 0.5%.

Retail sales excluding auto inclined 0.3% following a decline by 1.8% that was revised to -2.0%, while forecasts referred to 0.7%.

Retail sales came better than forecast, backed by rising consumer confidence that reached the highest in three years by the beginning of 2010. According to today's report, sales increasing in 12 of 24 store categories in January led by vehicles dealers, fuel outlets, accommodation and recreational goods.

Report today showed increasing sales in super markets and grocery stores, which represents about a quarter of the core retail sales by 0.2%, in addition to rose in car sales by 2 %, and the report also shows high duel outlets at the beginning of current year, by 2.8 % with higher rates of Gasoline.

The Report indicted the monthly reading is not adjusted to prices change, which showed increasing food prices during January by 2.1 % compared with the previous reading in December, in addition to high fuel prices by 5.5 % at the beginning of current year.

The retail sales increasing at beginning of current year is a better than of the expectations to support the New Zealand's central bank look that indicated to the economy is forecast to rose by 0.9 % during the 1st quarter, supported by consumer spending in the upcoming period.

Mr. Alan Pollard New Zealand central bank governor announced yesterday bank's decision to steady the interest rate at the straight seven meetings at lowest rates at 2.5 %, because it will keep the interest rate at low levels until the half of current year to support the economic recovery of New Zealand.

Ecpulse

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