17 Feb 2017

Car sales leads growth in retail spending

3:51 pm on 17 February 2017

Retail spending has continued its steady growth, led by car sales.

SUV

Photo: 123RF

Official figures show a seasonally adjusted rise of 0.8 percent in retail sales volumes - which takes account of price movements - in the three months to December.

That previous quarter also notched up saw 0.8 percent growth.

Household spending is chugging along, helped by more purchases of expensive cars and SUVs, particularly in Auckland.

People also spent more on pharmacy items like cosmetics, health products and medicines, as well as accommodation and and electronic goods.

Economists said spending was modest when the growth in population was factored in.

Separately, manufacturing activity eased back to its lowest level of expansion in two years, which has been put down to firms taking a break over Christmas, and the inclement weather.

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