Core retail sales - excluding vehicle and fuel spending - were closer to the expected level, with sales increasing by 0.9%. Most core retail sectors posted modest gains in sales.
Pharmaceutical sales experienced the biggest increase.
Spending related to the housing market, such as on furniture, hardware and building supplies, was fairly flat.
ASB chief economist Nick Tuffley said the housing market spending was expected to be an area of strength, given recent increases in the number of house sales.
Beyond the core retail sectors, there was strength in motor vehicle and parts sales, which rose 7.3%. That followed a strong increase in the first quarter, meaning inflation-adjusted vehicle spending over the quarter was 13.4% higher than in the last quarter of 2011.
"That suggests consumers are confident enough to make significant discretionary purchases, despite the rather flat furniture numbers," he said.
The retail survey backed up the story seen in the electronic card transactions: retail spending had continued to gradually build momentum and the Rugby World Cup volatility was now in the past.
Discretionary spending was also healthy over the quarter.
Car, hospitality and electrical goods volumes were all up, he said.
One encouraging bit of news was that sales growth in the Canterbury region was in line with that of other main centres - a contrast to the employment weakness that was a surprise in last week's labour force survey.
Mr Tuffley still expected the Reserve Bank to wait until June next year before lifting the official cash rate from the current 2.5%.
