WELLINGTON, March 13 (Reuters) - New Zealand retail sales fell in January as consumers kept their wallets shut amid recession and rising unemployment, backing views the central bank will continue to lower borrowing costs.
Seasonally adjusted retail sales values fell 1.1 percent on the previous month, official data showed on Friday, compared with a Reuters poll predicting no change.
'The data doesn't stop the RBNZ (Reserve Bank of New Zealand) easing further, it probably just leaves them intact, with probably some more easing to go, while waiting to see whether the news gets better or worse,' said UBS senior economist Robin Clements.
The New Zealand dollar softened around 10 points to $0.5205/10 after the data. The yield on the June bank bill contract eased a tick to 2.99 percent compared with the 3 percent official cash rate.
New Zealand consumers struggled last year in the face of high interest rates, a stalled housing market, and rising food and fuel costs. The global financial turmoil has since exacerbated a domestic recession, with job losses rising and wage growth weakening.
The Reserve Bank of New Zealand (RBNZ) has responded by cutting the official cash rate by a total of 525 basis points since last July to a record low 3 percent.
Governor Alan Bollard repeated on Friday that the central bank will be more cautious about future cuts, with little room to go below 2.5 percent.
A Reuters poll shows an expectation of a a further 25 basis points at its April 30 review.
Friday's data showed the value of January core retail sales, excluding autos, rose 0.3 percent, in line with economists' expectations in the Reuters poll.
Vehicle sales slumped to 11-year lows last month, and a fall in the New Zealand dollar had led retailers to run sales promotions before price rises for imported items.
The retail sales figures confirmed evidence from retailers of weaker conditions over the period.
Warehouse Group Ltd, the biggest retailer, reported on Thursday a 24 percent fall in its first-half profit on lower sales and one-off costs, and said it expected a challenging retail environment to impact its full year result.
(Reporting by Mantik Kusjanto) Keywords: NEWZEALAND ECONOMY/RETAIL (mantik.kusjanto@thomsonreuters.com; +64 4 471 4232; Reuters Messaging: mantik.kusjanto.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Seasonally adjusted retail sales values fell 1.1 percent on the previous month, official data showed on Friday, compared with a Reuters poll predicting no change.
'The data doesn't stop the RBNZ (Reserve Bank of New Zealand) easing further, it probably just leaves them intact, with probably some more easing to go, while waiting to see whether the news gets better or worse,' said UBS senior economist Robin Clements.
The New Zealand dollar softened around 10 points to $0.5205/10 after the data. The yield on the June bank bill contract eased a tick to 2.99 percent compared with the 3 percent official cash rate.
New Zealand consumers struggled last year in the face of high interest rates, a stalled housing market, and rising food and fuel costs. The global financial turmoil has since exacerbated a domestic recession, with job losses rising and wage growth weakening.
The Reserve Bank of New Zealand (RBNZ) has responded by cutting the official cash rate by a total of 525 basis points since last July to a record low 3 percent.
Governor Alan Bollard repeated on Friday that the central bank will be more cautious about future cuts, with little room to go below 2.5 percent.
A Reuters poll shows an expectation of a a further 25 basis points at its April 30 review.
Friday's data showed the value of January core retail sales, excluding autos, rose 0.3 percent, in line with economists' expectations in the Reuters poll.
Vehicle sales slumped to 11-year lows last month, and a fall in the New Zealand dollar had led retailers to run sales promotions before price rises for imported items.
The retail sales figures confirmed evidence from retailers of weaker conditions over the period.
Warehouse Group Ltd, the biggest retailer, reported on Thursday a 24 percent fall in its first-half profit on lower sales and one-off costs, and said it expected a challenging retail environment to impact its full year result.
(Reporting by Mantik Kusjanto) Keywords: NEWZEALAND ECONOMY/RETAIL (mantik.kusjanto@thomsonreuters.com; +64 4 471 4232; Reuters Messaging: mantik.kusjanto.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.