Retail sales volumes up

NEW Zealand retail sales volumes lifted more than expected in the December quarter, boosted by spending on pharmaceuticals, dutyfree goods and food services

Retail sales volumes rose a seasonally adjusted 1.7% in the December quarter from a revised 0.3% gain in the September period, Stats NZ said. That is higher than the 0.5% gain expected by economists.

In reaction, the New Zealand dollar rose to US68.61c from US68.41c just prior.

Robust spending over the December 2018 quarter led to 11 of the 15 retail industries recording higher sales volumes.

Sales volumes grew a record 8.2% for pharmaceutical and other storebased retailing; food and beverage services lifted 4.2%. These increases followed sizeable falls in the September 2018 quarter for both industry groups.

‘‘Increased visitor numbers to New Zealand could be a factor in higher sales for both of these industries, such as sales for dutyfree outlets and food service operators,’’ retail statistics manager Sue Chapman said.

More than half a million visitors arrived in New Zealand in December, breaking the previous December 2017 monthly record.

The largest falls in volume sales were in hardware, building, and garden supplies, down 2.1%, and department stores, down 2.6%, in the quarter.

In actual terms, total retail sales were $26.3 billion in the December 2018 quarter, up 4.5%, or $1.1 billion, on the December 2017 quarter. — BusinessDesk