The signs of economic recovery pushed New Zealand's retail sales by 1.1%, much above the expectations of leading economists. Statistics New Zealand hoped even better performance across the segment as economic recovery has been steadily gathering pace to perform better in future.

Recently released figures indicates 1.2 percent rise in core retail sales excluding car yards, fuel outlets and workshops.

Helen Kevans, an economist at JPMorgan Chase & Co. in Sydney, said, "It appears household consumption will make another positive contribution to growth in the third quarter."

The country has been experiencing rise in consumer confidence as indicated by rising immigration and booming housing segment. The improving trend may propel the Reserve Bank Governor Alan Bollard to raise interest rates in few weeks to come.

Craigs Investment Partners analyst Ross Cuthbert said, "Money markets now are factoring in a rate rise from the Reserve Bank in January next year, so that's far earlier than what the bank was expecting towards the end of 2010.