12 Mar 2010

Retail spending rises slightly in January

9:10 pm on 12 March 2010

Retail sales rose a seasonally-adjusted 0.8% in January, Statistics New Zealand says.

Core retail sales, which exclude car and fuel sales, increased 0.3%, regaining some lost ground after a 2% fall in December

ANZ senior economist Khoon Goh says a breakdown of the figures suggests consumers are simply paying more for basic goods such as food and fuel, and are still cautious about buying anything extra.

He says the weak figures should calm the Reserve Bank's fears of a consumer-led recovery from the recession.

Mr Goh says weaker than expected housing sales figures released on Friday may also cause the Reserve Bank to hold off on any interest rate hikes.