Q2 figures expected to weaken significantly due to surging fuel prices, despite a Q1 rebound.
New Zealand’s retail sales data for Q2 is due shortly, with economists forecasting a marked deceleration from the previous quarter. The slowdown is attributed to soaring fuel prices, which have weighed on consumer spending despite a Q1 uptick.
In Q1, retail sales saw a modest recovery, but consensus estimates suggest a sharp pullback in Q2. Comparable periods indicate fuel price spikes often correlate with reduced discretionary spending, amplifying the downturn.
Markets are monitoring the release for signs of broader economic softening, though no immediate FX or equity reactions are expected ahead of the print.