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New figures show seasonally adjusted total retail sales fell 0.7 per cent in October, adding to indications that rising costs and a slowing housing market are hitting New Zealand consumers.
The data may point to a grim festive season for retailers, if the slowdown went on through November and into this month.
Publishing the data yesterday, Statistics New Zealand said sales had fallen for 15 of the 24 industries surveyed.
October's fall, which amounted to about $40 million in sales, followed a rise of 1 per cent in September.
Industries that contributed the most to the decrease were motor vehicle retailing down 2.8 per cent or $20 million, supermarket and grocery stores retailing down 1.1 per cent or $13 million, and appliance retailing down 4.7 per cent or $10 million.
The only increase was for automotive fuel retailing, up 3.5 per cent or $18 million.
The average monthly trend increase between May 2007 and October 2007 eased to 0.2 per cent, compared with an average increase of 0.6 per cent between May 2006 and April 2007.
Core retailing, which excludes the four vehicle-related industries, was down 1.1 per cent in October, following a 0.4 per cent increase in September.
Total retail sales were 5.5 per cent ahead of where they were a year ago.
Auckland region sales were down 0.5 per cent from a month earlier, Waikato down 1 per cent, Wellington down 1.4 per cent, the rest of the North Island up 0.3 per cent, Canterbury down 1.1 per cent and the rest of the South Island down 0.9 per cent.
Bank of New Zealand chief economist Stephen Toplis said the data would give the Reserve Bank some confidence domestic demand was dissipating enough for it to avoid another interest rate rise.
- NZPA
