Retail sales rose a seasonally and inflation-adjusted 0.4 per cent in the June quarter.
The data was better than expected, with the median forecast of economists in a Reuters poll having been for no change.
Releasing the figures, Statistics New Zealand (SNZ) said the rise in total retail sales volumes was the first since the September 2007 quarter.
ASB economist Jane Turner said the figures proved "slightly stronger than we were expecting."
"The stabilisation in retail sales mirrors the stabilisation in economic data globally. After 18 months in recession, the NZ economy is likely to be close to a trough, " she said.
The recent labour market statistics suggested that employees were sharing the burden of the economic downturn, with reduced average hours mitigating the extent of job layoffs.
"With fewer people losing jobs (than otherwise expected) households have reason to feel slightly more confident. There is increasing confidence that the economy is passed the worse and close to a turning point. "
As a result, households were likely to start to feel more confident about their own financial position.
"Nonetheless, the recovery is likely to remain muted," said Turner. "Unemployment is yet to reach its peak, and households are likely to continue to focus on savings to restore the decline in wealth over the past year. While retail sales have now bottomed, growth is likely to remain weak for sometime yet."
Vehicle fuel volumes rose 2.8 per cent, vehicle sales volumes edged down 0.2 per cent, and appliance sales volumes lifted 3.1 per cent.
Actual sales in the June quarter were down 1.8 per cent from a year ago at $15.6 billion, while the volume of actual retail sales was down 4 per cent over the year, SNZ said.
For the month of June seasonally adjusted retail sales rose 0.1 per cent from May, with appliance sales up 9.9 per cent or $20 million, and fuel sales up 2 per cent or $10 million. Clothing and softgoods sales were down 9.1 per cent or $21 million.
- NZPA/ NZ HERALD STAFF
