Boom in vehicle spending

Retail sales rebounded in the final quarter of 2021 with jumps in many industries, including automotive, almost reversing falls recorded in the lockdown period of the September 2021 quarter, reports Stats NZ.

After price effects were removed, the seasonal adjusted total sales volumes climbed by 8.6 per cent in the December 2021 quarter, compared to the 8.2 per cent fall seen during the quarter prior to it.

Two industries dominated increases in the December quarter. Strong rises were seen in motor vehicles and parts retailing, up by 22 per cent, and in the hardware, building and garden supplies industry – up by 33 per cent. These industries had falls of 13 and 15 per cent respectively during the September 2021 quarter.

Motor-vehicle dealers and building-supply owners experienced an increase in sales during the reporting period. Higher vehicle imports and registrations were recorded, along with increased construction activity, particularly in residential housing with record numbers of consents issued monthly since early 2021.

“We are most likely seeing a surge in sales following the longer period of Covid-19 lockdowns, especially in the Auckland region,” says Evie Rolinson-Purchase, Stats NZ’s retail business manager.

“Some New Zealanders maybe choosing to upgrade vehicles or undertake home improvements rather than spending on overseas holidays.”

In actual terms, using year-on-year movements, total retail sales values reached their highest level of $31 billion in the quarter, up by 8.8 per cent and some $2.5b on the corresponding December 2020 quarter.

Hardware, building and garden supplies went up by 21 per cent and $595 million. Motor vehicles and parts climbed by 16 per cent and $588m. Again, these two industries showed the largest increases compared to the same period a year ago.