New Zealand retail spending on credit, debit and charge cards rose in July, though the gain was almost entirely driven by spending on fuel, while core retailing dropped for the first time in four months.
Total retail billings rose 0.4 per cent, seasonally adjusted, in July, while growth in spending for June was revised down to 1 per cent from 1.1 per cent, according to Statistics New Zealand. Excluding fuel, core retail transactions fell 0.7 per cent, mainly reflecting weaker apparel sales.
July data may not be enough in itself to signal a softening of retail activity, since it follows three strong months and individual components such as clothing can shift around on temporary factors like unexpectedly warm weather in winter.
The data accounts for about 65 per cent of New Zealand retail sales and is the main indicator of monthly consumer spending since the retail sales series was moved to a quarterly basis. Figures for the June quarter are due for release on Aug. 14 and are forecast to show a quarterly gain of 1.25 per cent, according to a Reuters survey, up from 0.5 per cent in the first quarter.
"It might be hinting that things are softening but with the monthly data you'd want to see a few more months to be sure," said Robin Clements, economist at UBS New Zealand. Apparel tends to be particularly volatile because of variables like shifting weather patterns.
