NZ: Expect only a 0.3% gain in Q3 retail sales volume - Westpac

Analysts at Westpac expect only a 0.3% gain in New Zealand’s retail sales volume for the September quarter.

Key Quotes

“Retail spending powered ahead in the June quarter, boosted by some high profile sporting events - the World Masters Games and the Lions rugby tour. These events, and the associated strength in tourism inflows, saw strong spending in the hospitality sector. The June quarter also saw spending gains in areas such as building supplies and electronics.”

“As we’ve moved into the second half of the year, the momentum in retail spending appears to have faded. A key reason for this is the slowdown in the housing market, which has dampened spending on durable items like household furnishing. We expect only a 0.3% gain in retail volumes in the September quarter. That would be the slowest growth we’ve seen since 2015.”