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Jane Turner: ASB Senior Economist on retail spending contracting in Q2 as petrol prices surged
Description
Retail's been taking a hit since the Iran war began, with people staying home to save money and fuel.
Stats NZ data shows the June quarter's inflation and seasonal-adjusted sales volumes fell 0.5% on the three months to March, but after accounting for surging fuel prices, petrol station sales actually plunged 13%.
The only significant growth was in computer and appliance store sales, with sectors that rely on people driving around and using discretionary money —accommodation, hospo, car dealers— also seeing drops.
ASB Senior Economist Jane Turner told Ryan Bridge they expect consumer spending will remain fairly modest throughout the rest of the year, with a more meaningful recovery coming next year.
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