Retail sales collapse an ominous sign

A record fall in core retail sales is an ominous warning that a double dip recession could be on the cards, Labour’s Economic Development spokesperson David Cunliffe says.

Core retails sales volumes were down 2.5 per cent in the March 2012 quarter, the largest fall since records began in 1995. Supermarket sales fell 7.4 per cent, also the largest fall on record.

“For years we have been promised an ‘aggressive recovery’ is just around the corner.

“But it’s a corner that never comes. National’s so-called ‘brighter future’ is fast slipping into the never-never.

“Today’s Department of Statistics data shows the biggest drop in both retail trade figures and supermarket sales since records began 17 years ago,” David Cunliffe said.

“New Zealanders are not spending because they can’t afford to. It’s not hard to see why - real incomes are going backwards and unemployment is back up to 6.7 per cent.

“A zero budget couldn’t come at a worse time for the real economy. Zero budgets are what you get when the economy is failing.

A zero budget will make zero contribution to reviving this failing economy; it will drive  zero new growth, zero new jobs and zero hope,” said David Cunliffe.