New Zealand wholesale sales fall 0.9 pct in Q2

WELLINGTON, Sept 7 - New Zealand seasonally adjusted wholesale sales fell 0.9 percent in the second quarter, led by petroleum products, marking the fourth quarterly fall in a row and the longest decline since the series began in March 1995.

In the first quarter, wholesale sales had fallen a record 5.8 percent.

Statistics New Zealand said on Monday the bulk of the wholesaling industries had lower sales on the previous quarter, with the largest movement a 8.9 percent drop in petroleum products.

Six industries posted rises, led by a 6.3 percent increase in motor vehicle wholesaling, the first increase since the September 2007 quarter.

The level of wholesale stocks fell a seasonally adjusted 4.6 percent, following falls of 1.8 percent and 3.6 percent in the March and December quarters.

The survey monitors the level of activity in the wholesale trade sector, which supplies retailers.

New Zealand has been in recession since the beginning of 2008, the longest contraction in more than three decades, and the downturn is expected to last through much of this year.

A Reuters poll of 12 economists last week showed the economy was likely to have contracted around 0.4 percent in the second quarter of 2009.

The Reserve Bank of New Zealand has cut its key interest rate by a massive 575 basis points to a record low of 2.5 percent since July 2008 to help the struggling economy.

All except one of 17 economists in the latest poll expect the RBNZ to keep the key rate at 2.5 percent on Sept. 10. See [NZ/POLL]