With the highest increase recorded in the sales of vehicles, retail sales have increased seasonally and in the June quarter, inflation adjusted 1.3%, which was more than the expectations of the economists.

Statistics New Zealand has today revealed the figures and said that since March 2007 quarter, this has been the largest rise in the volumes.

Higher sales volume has been reported in all four categories of vehicle-related industry, with the 4% increase in the vehicle sales.

The 20 primary retail industry groups reported for just over half the increase in sales volumes with 0.9% of increase.

According to the Reuters poll of economists, the estimates were for an increase of 0.2% in the seasonally adjusted retail volumes.

From May, the seasonally adjusted retail sales in June boosted 0.9%, with the largest rise in the recreational goods, as New Zealand’s customers are spending more on recreational items.

"The bounce-back in retail sales for the June month suggests some willingness on the part of households to spend again", said Jane Turner, economist at ASB.

The increase in the volume of sales, mainly in clothing and footwear section, exhibits a genuine improvement in discretionary spending on the part of the households.