Wholesale trade sales up in December quarter

Wholesale trade sales rose a seasonally adjusted 1.9 per cent or $383 million in the December quarter, the first rise since June 2008.

The declines between the September 2008 and September 2009 quarters was the most prolonged period of decline since the series started in 1995, Statistics New Zealand (SNZ) said, publishing the data today.

The latest figures were boosted by four industries which each had rises of more than $100m, even as most industries posted sales falls.

A 10.9 per cent or $140m rise in motor vehicle wholesaling was the industry's largest quarterly rise since 2002, and came after a fall of 5.9 per cent or $81m in the September quarter, SNZ said.

From quarterly sales around $1.7 billion from March 2007 to March 2008, the level of motor vehicle wholesaling had fallen to between $1.3b and $1.4b a quarter, similar to levels in 2001 and 2002.

Other big rises included petroleum product wholesaling up 8.5 per cent or $139m, builders' supplies wholesaling up 6.7 per cent or $109m, and primary product food wholesaling up 6.5 per cent or $105m.

Following four quarters of large stock decreases, total wholesale trade stocks were flat in the December quarter, down just 0.1 per cent or $11m, SNZ said.

The largest decline in stocks was an $87m or 7.8 per cent fall in farm, construction machinery, and professional and business equipment wholesaling. Motor vehicle wholesaling stocks fell 6.3 per cent or $74m and petroleum product wholesaling stocks fell 4.9 per cent or $58m.

The biggest rise in stocks during the December quarter was a $60m or 6.4 per cent gain in food and grocery products wholesaling.

- NZPA