12 Sep 2011

Economy expands in June quarter

1:17 pm on 12 September 2011

Wholesale trade sales have risen for the seventh consecutive quarter, indicating the economy is expanding.

Seasonally adjusted sales rose 2.2% in the June quarter compared with the previous three months, figures released on Monday show.

The Statistics New Zealand data tracks the level of activity in the wholesale trade sector, which supplies retailers.

BNZ economist Doug Steel says the June quarter recorded enough of an increase to suggest the economy had moved forward, even if not at a great rate.

The June quarter increase was led by an 9.8% rise in sales of general goods including textiles, footwear and furniture.

Mr Steel says data published on Tuesday on activity in the manufacturing sector will give a better indication of economic growth in the second quarter.