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Retail sales were weak in February as the consumer dollar flowed to necessities like food and away from big ticket items like cars.
Total retail sales fell 0.7 per cent from January levels when adjusted for seasonal and leap year effects, Statistics New Zealand said.
The fall was largely due to a decline of $41 million or 5.8 per cent in vehicle sales.
Core retail sales, which exclude the automotive sector, rose 0.2 per cent but only because of a 1.6 per cent rise in supermarket and grocery sales. Excluding that, core retail sales were flat.
Much of the increase in supermarket and grocery store sales would have reflected higher prices; food prices rose 0.8 per cent in February.
"A clear gap is now opening up between spending on fuel and food and other retailing," ANZ National Bank chief economist Cameron Bagrie said.
"Looking at individual trends only food - we have to eat - petrol and tourism-related sectors are positive. The remainder are flat to negative, particularly interest-rate-sensitive durables like appliances."
In February, 14 of the 24 store types recorded lower sales than in January, seasonally adjusted.
The slowdown was marked in Auckland and Waikato. down 3.2 and 4 per cent on January respectively compared with 0.7 per cent nationwide.
Deutsche Bank chief economist Darren Gibbs said that despite decent growth in incomes and the prospects of income tax cuts, households were clearly in no mood to boost spending, with balance sheets under pressure from falling house prices and falling prices for financial assets.
