Automotive retail spending rises

Sales volumes for motor vehicles and parts retailing increased by $145.4 million, or 4.3 per cent, in the September quarter, when compared with the previous three-month period, according to new figures from Stats NZ.

The industry’s total came in at $3.56 billion for the latest quarter, equal to what it achieved during the same period a year ago, but up from $3.41b in the June quarter.

The seasonally adjusted data also shows sales values for the industry during the September quarter rose by $124.4m, or 3.3 per cent, from the June quarter to reach $3.88b.

However, the value of stock for motor vehicles and parts recorded the largest decrease across the industries studied and fell in actual terms by $109m, or five per cent, from the same quarter a year ago.

This meant the value of stock held by the automotive trade stood at $2.06b at the end of September, the lowest total for the sector of the past two years.

The rise in automotive sales volumes and values came as the total volume of retail sales in New Zealand decreased by 0.1 per cent to $24b in the September 2024 quarter.

Ten of the 15 retail industries had lower retail sales volumes in the three months, compared with the June 2024 quarter, after adjusting for price inflation and seasonal effects.

The largest contributors to the fall in retail activity were supermarket and grocery stores, down $62.6m, or 1.3 per cent, and food and beverage services, slipping $53.5m, or 2.1 per cent.

Michael Heslop, Stats NZ’s economic indicators spokesman, says: “Retail activity was flat in the September 2024 quarter, with a decrease in spending in most retail industries being offset by an increase in motor vehicles and electrical and electronic goods.”