New Zealand retail sales have risen less than expected in the first quarter, with electrical and electronic goods leading the gains, while supermarket and grocery sales have fallen.

The volume of retail sales rose a seasonally adjusted 0.7 per cent in the first three months of 2014, according to Statistics New Zealand, less than the 0.8 per cent expected by economists in a Reuters survey.

Actual sales were up 3.4 per cent in value from the same quarter a year earlier, lagging the 3.7 per cent estimate in the Reuters survey.

Retail sales are increasing as consumer confidence remains perky in an expanding economy.

The Reserve Bank in April lifted its expectation for gross domestic product (GDP) growth in the year ended March 31 by 0.2 of a percentage point to 3.5 per cent saying “economic expansion has considerable momentum.”

Retail sales figures for the fourth quarter were revised up to a seasonally adjusted gain of 1.4 per cent from the previously published 1.2 per cent increase, suggesting retail sales growth in the second half of 2013 was more robust.

Sales in electrical and electronic goods led the quarterly increase in volumes, up 5.5 per cent following a 3.7 per cent gain in the fourth quarter.

Hardware, building and garden supplies rose two per cent in the first quarter while food and beverage sales increased 1.5 per cent.

Meanwhile, sales in the supermarket and grocery stores declined 0.7 per cent, and sales of furniture, floor coverings, house ware and textiles fell 2.4 per cent.

BusinessDesk