Photo: RNZ / Rebekah Parsons-King
Retail sales fell in the June quarter, reflecting the pressure rising prices and high interest rates are putting on consumers' wallets.
Stats NZ data shows retail sales, adjusted for inflation, were down 1.2 percent in the three months to June. The drop continues the downward trend seen for two years.
Sales for electronic goods, motor vehicles, hospitality and clothing were down, while supermarket sales were up.
Retail NZ chief executive Carolyn Young said the data shows how challenging it has been for retailers.
But she said with the Reserve Bank cutting the official cash rate and promising more cuts will follow there is hope the economy will pick up.
"We are all hoping that last weeks OCR cut and the recent tax cuts will help kick start the economy and provide a change in fortune for retail. While we appreciate it's not going to happen overnight, that shift in consumer confidence is critical. The continued financial pressures over the last couple of years has squeezed households spending appetites."
Fourteen out of 16 regions had lower sales, the exceptions being Canterbury and West Coast.
Westpac senior economist Michael Gordon said the figures are in keeping with other soft data for the June quarter indicating GDP, which will be published in mid-September, is likely to be soft too.
He said although high rates and prices are easing, pressure on consumers could be replaced by concerns about job security and income growth.
