The labor market data showcased that the unemployment rate reached 6.8%. It can suppress the increase in remuneration and can also harm consumer spending.

Also, Statistics New Zealand exposed that the seasonally adjusted value of card transactions for use of electronic cards for retail sales dropped 0.1% in July from June, caused by decrease in the fuel sales to the tune of 3.1%.

The fuel prices rose 3c-a-liter due to the onset of emissions trading scheme. This rendered sales in automotive retail sector increased by just 0.7%, weaker than last year's rise of 3.7%.

The sales in the food, liquor, and chemist segment increased 2.1% in July, which triggered the sales in core retail industries.

Philip Borkin, Economist of Goldman Sachs JB said, "We wonder if this is a reflection of higher food prices starting to emerge".

The non-retail industries witnessed a plunge of 0.2%, while the services like travel and health, and wholesaling met with a fall of 1%.

Citing the levy of 15% GST from October 1, the sales of consumer durables climbed 0.8%.

Borkin added that in order to entice consumer spending and to experience good turnovers, the retailers are suggested to give more rebates.

The rise in the consumer purchasing have violated the business surveys that forecasted the weakening of sales.