Q3 2022 Retail Trade Review: Retail spending in the RBNZ’s sights

  • Much weaker than expected rebound in Q3 retail volumes results as rising consumer prices weigh on demand for retail goods and durable goods retrace from earlier peaks. We suspect consumers are also shifting expenditures back towards pre-COVID-19 norms. That will largely be missed by the retail trade figures but will be picked up by economy-wide GDP
  • Despite a number of headwinds and weak sentiment the household sector in general has held up well to date. Nonetheless, retail activity is clearly in the RBNZ’s sights and is likely to struggle over the period ahead as the monetary policy brakes are applied more forcefully
  • How the household sector copes with rising debt servicing (and wider living) costs will have a crucial bearing on how far up the OCR goes and how long restrictive settings are maintained


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Nick Tuffley

ASB Chief Economist

Since starting out in 1997 as an economist, it's fair to say Nick has seen a few hair-raising moments over the years, including the Asian Financial Crisis and the Global Financial Crisis.

One of Nick's strengths is his ability to communicate complex ideas in a readily understandable and entertaining way.  He thrives on helping people understand the economic environment to help enrich the quality of their business or personal life. He’s proud to lead a team that has won two Forecast Accuracy Awards from Consensus Economics, and has a strong track record with their Official Cash Rate and dairy price forecasts. 

Nick grew up in Christchurch and graduated with a Master of Commerce degree from the University of Canterbury.  He learned his economic ropes at the Reserve Bank of New Zealand before a long stint as a Senior Economist at Westpac, and joined ASB as Chief Economist in 2007.

Mark Smith

Senior Economist

Mark joined ASB in 2017, with over 20 years of public and private sector experience working as an economist in New Zealand and the UK.

His resume includes lengthy stints at ANZ and the Reserve Bank of New Zealand, and he has also worked at the Bank of England, HM Treasury and the New Zealand Transport Agency. Mark's areas of specialisation include interest rate strategy, macro-economic analysis and urban economics.

Born and bred in the Waikato, Mark studied at Waikato University where he graduated with a Master of Social Sciences, majoring in Economics.

Mark's key strengths are the ability to use his extensive experience, inquisitive nature, analytical ability, creativity and pragmatism to dig a little deeper and to deliver common sense solutions to tackle complex problems.

When not at work Mark likes to travel, keep fit and spend time with his friends and family.