The retail sales in New Zealand plummeted in April. This indicates that there has not been a pre GST -hike increase in the demand.
According to Statistics New Zealand, the retail sales witnessed a 0.3% decrease in April. They had risen by 0.5% in March. Reuters Survey had not expected any change in the rate.
Core retail sales decreased by 0.2%, as was predicted, earlier. These retail sales do not include vehicle-related industries.
On October 1, the goods and services tax will be increased from 12.5% to 15%.Economists are witnessing the spending rates on big ticket items, before the rise.
Last week, the official cash rates were increased to 2.75%. Governor, Alan Bollard revealed that the businesses and households would carry on with tallying their balance sheets.
Economist at Goldman Sachs JBWere, Philip Borkin, revealed that as the labor market is steady, there is an ongoing attempt to revive the consumer spending. He further added that the rate of spending growth is predicted to be less than the rate that the economists have become accustomed to, in the past decade.
The department stores were first to witness a decrease in the rates, last month.
Accommodation rate showed a 7% increase and sales of grocery store rose 0.5%.
