Household belt-tightening impacting retail sales, economists say

Spending on hardware, building and garden supplies between March this year and last decreased 13% with spending on vehicles falling 7.5%. (Image: Getty)

Riley Kennedy

Wed, 24 May 2023

Increasing interest rates and inflation eating away at household finances are impacting retail sales, which have dropped for the second quarter in a row.According to Statistics NZ, the total volume of actual retail sales fell 4.1% in the March quarter, compared with the same three-month period last year.The decrease follows another 4% drop in spending in the final quarter of 2022.However, the total value of sales last quarter was up 4.7%, or $1.3b, to $30b, compared with last year.Decreased volumes in hardware and vehicle retailing helped drive...

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