Wholesale trade rises 1.9% in Dec quarter; first rise since June 2008 (Update 1)

Total wholesale trade sales rose 1.9% (NZ$383 million) in the December 2009 quarter, the first increase since June 2008, due mostly to increased vehicle sales, petrol sales and building supplies, while sales of machinery fell the most, Statistics New Zealand said today. (Update 1 includes chart). These figures suggest the economy is beginning to recover, but that activity is focused again on consumption and housing, rather than on business investment. The government and the Reserve Bank have expressed concern in the past that any recovery should be led by exporters and businesses, rather than by consumers. See the full release here:

Total wholesale trade sales, after adjusting for seasonal effects, rose 1.9 percent ($383 million) in the December 2009 quarter, Statistics New Zealand said today. This is the first increase since June 2008. “Although more industries posted sales decreases than increases this quarter," business statistics manager Louise Holmes-Oliver said, "four of the increases were more than $100 million, resulting in the rise in overall sales.” These industries were: motor vehicle wholesaling, up 10.9 percent ($140 million) petroleum product wholesaling, up 8.5 percent ($139 million) builders' supplies wholesaling, up 6.7 percent ($109 million) primary product food wholesaling, up 6.5 percent ($105 million). The biggest sales decrease was in machinery and equipment not elsewhere classified, down 9.7 percent or $80 million. This industry includes a wide range of activities such as wholesaling air conditioning equipment, office furniture, paper-making, and woodworking machinery and equipment. “Wholesale sales trend figures indicate a slight upwards movement during the September and December 2009 quarters, rising 1.5 percent,” Mrs Holmes-Oliver said, “however, latest trend estimates should be used with caution as they may be revised when more information becomes available.” The sales trend fell 10.2 percent between the September 2008 and June 2009 quarters. Following four quarters of large stock decreases, total wholesale trade stocks were flat in the December 2009 quarter, down just 0.1 percent or $11 million.