Retail spending has rebounded, led by a jump in car sales.
Official figures show retail spending rose 1.1% in the three months to June compared to the previous quarter, when it contacted 0.6%.
Excluding price changes, volumes rose 1.3%, with higher car sales offsetting fuel sales.
Stripping out volatile car and fuel sales, core retail volumes rose 0.9%.
UBS senior economist Robin Clements says while people appear keen to keep down their debt levels, they're still spending, although at modest volumes.
On an annual basis, retail spending rose 4.8%.
Statistics New Zealand says the trend for retail spending has eased back this year, after strong growth last year.
