Satish Ranchhod, senior economist at Westpac, notes that the New Zealand’s retail spending rose by 0.9% in February, thereby reflecting a return to trend for retail spending after some sharp swings in recent months.
“Importantly, it reinforces our expectations for a rebound in economic growth in early 2019. That follows the reversal of the sharp oil price increases that dampened spending last year. Retail spending is also being boosted by the increases in government spending now rippling through the economy (including transfers to households as part of the Governments’ Families Package).”
“February’s increase in spending was mainly related to increased spending on groceries, liquor and hospitality. Spending on durable items, in contrast, flattened off.”
“Looking to the year ahead, we expect spending will continue to grow at a moderate pace, supported by growth in nominal incomes, lower petrol prices, and the boost to the housing market from low mortgage rates. Longer-term, spending growth will be challenged by factors such as slowing population growth.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.