Failure to Launch: Economic Recovery Falters
Electronic card data for September reveals a seasonally-adjusted 0.5% decline in retail spending, following three consecutive months of gains.
The latest figures from Statistics NZ indicate a patchy economic recovery, with
"the spirit is willing but the economy is weak". This decline is further supported by recent services industry and manufacturing sector performance index figures, as well as flat housing figures.
The Reserve Bank's decision to cut the Official Cash Rate by 50 points to 2.5% may be seen as an attempt to stimulate the economy. Retailers, in particular, have been struggling.
Key points:
- 0.5% decline in seasonally-adjusted retail spending in September
- Three consecutive months of gains prior to the decline
- Patchy economic recovery indicated by recent figures
Author's summary: Economic recovery shows signs of weakness.