NZ retail sales: Ending the year on a high note - Westpac

New Zealand households ended 2017 with a bang as retail spending rose 1.7% in the December quarter to be up 5.4% over the year and was a bit above our own forecast and market expectations, explains Satish Ranchhod, Senior Economist at Westpac.

Key Quotes

“Underpinning the rise in overall spending was a solid 1.8% lift in core categories. That included a 3% increase in spending on hospitality (that was likely encouraged by the hot summer weather), as well as gains in food and grocery sales. There were also solid gains in categories such as clothing and electronics. Some of the strength in the quarter may have been related to the increased prevalence of ‘Black Friday’ sales in New Zealand.”