New Zealand Retail Sales Rise In November

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Retail sales in New Zealand increased in November after remaining more or less flat in the past two months, data released by Statistics New Zealand showed on Thursday.

Retail sales climbed a seasonally adjusted 0.8% month-on-month to NZ$46 million in November, accelerating from the revised 0.1% increase in the previous month. Economists had expected a 0.5% increase. Core retail sales, which excludes four vehicle-related industries, were also up 0.8%.

Fifteen of the 24 retail industries recorded increased sales in November, with the sales gain led by automotive fuel retailing, where sales rose 3.8%. Sales in other retailing grew 7.3%, while those in department stores and liquor retailing increased 3.5% and 9%, respectively. On the other hand, sales in motor vehicle retailing slid 3.2% and that in cafes & restaurants declined 1.9%.

Retail sales increased across the country excepting Auckland, where sales dropped 0.5% in November. Sales in Wellington grew 1.5%, while sales in Waikato increased 0.7% and those in Canterbury were up 1.4%.

On a yearly basis, retail sales increased 2.4% in November, rebounding from the 0.2% decrease in the previous month. This marks the first time annual sales have risen in 2009.

Also on Thursday, Business New Zealand announced that New Zealand's Performance of Manufacturing Index - a key indicator of the health of the manufacturing sector - stood at a seasonally adjusted 52.9 in December, up 1 point from November. A reading above 50 indicates expansion, while one below 50 suggests contraction. This marks the highest level of expansion recorded in manufacturing activity since December 2007.

Three of the five component indices displayed expansion in December. The production sub-index at 54.1 and the new orders sub-index at 57.2 both displayed their highest results since November 2007. The deliveries of raw materials sub-index was at 52.9 - its highest result since February 2008.

On the other hand, the employment sub-index remained in contraction at 48.7, while the finished stocks sub-index was at 47.5.

New Zealand entered recession in 2008 - a downturn which lasted five quarters and ended in the June quarter of 2009. The economy is heavily reliant on exports for its revenue.

During early Asian trading on Thursday morning, the New Zealand dollar staged a rebound from previous sessions' stiff losses following the release of the retail sales report.

Retail sales in New Zealand increased in November after remaining more or less flat in the past two months, data released by Statistics New Zealand showed on Thursday. (Market News Provided by RTTNews)