The retail sector has bounced back strongly

ASB is reporting a 28 per cent increase in retail trade spending volumes in the third quarter compared with the previous quarter.

People were eager to get out and shop after coming out of lockdown, and our closed borders mean people are spending more on domestic tourism.

But ASB Senior Economist Mark Smith says there are other factors at play too.

He says interest rates are down, mortgage rates are at record lows -- and these factors combined with a buoyant housing market, encourage people to go out and shop.