The nation appears to be collectively enjoying a cheap night at home during the recession with a home-cooked meal, bottle of wine and a DVD.
"In the face of the recession, households are changing their spending patterns and are looking for cheaper entertainment options," ASB economist Jane Turner said yesterday.
She was commenting on the Statistic New Zealand's report showing that February retail sales were up 0.2% in February, above market expectations of -0.5% and the ASB forecast of zero.
A price-induced 6.7% increase in fuel retailing offset another decline in automotive sales. Motor vehicle sales were down 23% on year-ago levels while February car registrations were down 44% on a year ago, pointing to further weakness to come, she said.
Supermarket spending remained strong, with spending growth outpacing the monthly increase in food prices.
The trend in liquor retailing had been flat, while spending at restaurants and bars was down.
However, personal and household goods hiring, of which video hire was a key component, had been growing strongly, Ms Turner said.
The 9.5% month-on-month increase in January was followed by a 9.3% increase in February, suggesting DVD stores had been reasonably busy over the past few months.
"Overall, today's data confirm the general trend in retailing has been flat, consistent with the subdued levels of consumer confidence. Economic uncertainty continues to weigh on households' minds with data starting to show a change in spending patterns."
Spending on big-ticket items, particularly cars, had taken the largest hit from the more conservative behaviour of consumers, she said.
Retail spending continued to evolve in line with expectations of ongoing weakness, although retail activity would be relatively flat this year in comparison to the drag on economic activity it was throughout last year, Ms Turner said.
