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MNI New Zealand Q2 Retail Sales Up; Rebound In H'Hold Spend

By Sophia Rodrigues
     SYDNEY (MNI) - New Zealand retail sales rose more than expected in the
second quarter, suggesting a rebound a household consumption and reducing
downside risk to the Reserve Bank's monetary policy.
     Data published by Statistics New Zealand Wednesday showed retail sales rose
1.1% q/q in Q2, beating MNI median forecast for a small 0.3% rise. Importantly,
the Q2 gain follows an upward revision in Q1 sales to +0.3% from +0.1%
originally reported.
     The largest contribution to Q2 sales came from hardware, building and
garden supplies that rose 4.7% q/q after a small 0.6% rise in Q1.
     Recreational goods rose 4.9% q/q, rebounding strongly from three straight
quarters of decline and indicating households' confidence in making
discretionary spending.
     Department stores rose 2.%, and electrical and electronic goods rose 2.0%.
Core retail sales rose 1.4%, after a 0.6% rise in Q1. Fuel sales fell 0.7% q/q
to mark the fourth consecutive quarterly fall. 
     The RBNZ forecasts assume a 0.9% q/q rise in household consumption in Q2
after a flat Q1, and the Q2 retail sales growth appears to be in line with the
forecast.
     Retail trade survey for the second quarter:
                                                  Q2                          Q1
--------------------------------------------------------------------------------
                               (seasonally-adjusted)       (seasonally-adjusted)
Retail Sales Volume                            +1.1%  +0.3% (revised from +0.1%)
MNI median forecast                            +0.3%
Core Retail Sales                              +1.4%                       +0.6%
Main Contributors:
Motor Vehicle and Parts                        +0.4%                       -0.3%
Fuel Retailing                                 -0.7%                       -1.7%
Supermarket and Grocery
Stores                                         -1.1%                       +1.0%
Liquor                                         -0.4%                       +2.3%
Hardware, Bldg, Garden                         +4.7%                       +0.6%
Accommodation                                  +1.2%                       -1.4%
Recreation Goods                               +3.2%                       +1.9%
Retail Sales Value                             +1.3%                       +0.3%
--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com
[TOPICS: MTABLE,MANDA$,MANDS$,MMNRB$,M$A$$$,M$N$$$,MT$$$$]

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