Retail figures jump 1.7pc

Retail sales rose sharply in February - in the second jump in a row.

But while January's 1.5 per cent seasonally adjusted increase could be explained as a rebound to more normal levels from an unusually weak, weather-affected December, February's 1.7 per cent is harder to account for. It was nearly three times the 0.6 per cent economists were picking.

Statistics New Zealand warned, however, that the increase had been flagged as "atypically high" by its seasonal adjustment model and should be treated with caution. Spending patterns might have been affected by when Waitangi Day and Auckland Anniversary Day fell.

Actual sales at $4.52 billion were 7 per cent up on February last year, or 6.1 per cent if the volatile automotive sectors are excluded.

But those comparisons are affected by 2004 being a leap year and Waitangi Day falling on a Friday last year, giving a long weekend.

The rises were widespread with 16 of the 24 retail sectors recording higher sales compared with January.

"Today's data have raised the probability of another [Reserve Bank] rate increase only marginally," Deutsche Bank chief economist Ulf Schoefisch said.