Wallets to stay shut in 2012 – economist | BUSINESS News

An economist says Kiwis will keep their spending under wraps for the rest of the year, over fears about the high unemployment rate and the global economy.

Official figures show retail spending in the first three months of this year took a record fall, compared to the final quarter of 2011.

Economist Matt Nolan from Infometrics told TV ONE‘s Breakfast today that the reason this current set of figures look so bad is because last year’s were artificially inflated by a spending boom during the Rugby World Cup.

“We’re definitely coming off the high of the World Cup – this is not actually that bad a figure,” he said.

Supermarket spending weakened significantly in the March quarter, with the volume of sales down 7.4% from December.

Although a decrease following the RWC was expected as tourists left, this drop took sales volumes to their lowest level since March 2009.

However, Nolan told Breakfast that compared to the same period in 2011, spending in 2012 saw a slight rise and it is not all doom and gloom for the retail sector.

“If you were a foreign economist – someone from the US – you’d look at this figure and think it was terrible,” he said.

“But if you’re a New Zealand economist and you’ve seen what’s happened during the World Cup, you can say this isn’t that bad – and if we compare it to a year ago, sales are actually up moderately,” he said.

via Wallets to stay shut in 2012 – economist | BUSINESS News.

Strange Random Money-Spending Quote:

“You’ve got to spend money to get money. That’s an important part of economic development … If you are going to label me as a ‘spendthrift,’ as they’ve tried to do, then that means you don’t spend anything at all and the economic development goes down the drain.” – Ann Cook

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Posted on May 15, 2012, in Article and tagged , , , , , , , . Bookmark the permalink. Leave a comment.

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