Failure to Launch: Economic Recovery Falters
Recent electronic cards data for September reveals a 0.5% seasonally-adjusted fall in retail spending, following three consecutive months of gains.
The data, released by Statistics NZ, indicates a patchy economic recovery, with the spirit willing but the economy weak.
- Seasonally-adjusted retail spending fell by 0.5% in September.
- This decline follows three consecutive months of increases.
- Services industry and manufacturing sector performance index figures were also weak.
- Housing figures remained flat.
The spirit is willing but the economy is weak.
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 faltering economy.
Retailers have been particularly affected by the economic downturn.
Author's summary: Economic recovery falters in September.