The research team at TDS points out that the New Zealand’s Q1 retail sales volume ex inflation surprised to the upside at +1.5%/qtr (mkt: +0.9%).
“9 out of 15 industries had higher sales volume but over half of the increase in retail sales volumes was from vehicle sales, rising at record +5.9%. This is driven by higher net migration/growing population. Also Q4 retail sale volumes were revised up from +0.6%/qtr to +0.9%. In terms of value, NZ retail sales Q1 rose +6.7%/yr. This is in contrast to AUS, where value of retail sales in Q1 +2.1%/yr. Overall today’s numbers indicate retail will help hold up GDP growth.”