New Zealand’s Retail Sales disappointed, yielding a flat result in December and snapping a four-month trend of consecutive expansion. Economists had forecast a 0.6% increase ahead of the release. Factoring out car dealers, gas stations and auto repair shops, receipts fell -1.8% to mark the largest monthly drop in at least 14 years. Despite a reliance on exports, New Zealand still counts on private consumption to contribute the largest share of overall economic growth. To that effect, lackluster retail activity bodes ill for economic recovery and a speedy return to higher interest rates, meaning the central bank may be forced to delay withdrawing monetary stimulus beyond the mid-year timeframe mentioned by RBNZ chief Alan Bollard.
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