Sharechat Logo

NZ terms of trade rise 1.5% in second quarter as dairy, meat export prices gain

Friday 1st September 2017

Text too small?

New Zealand's terms of trade rose less than expected in the second quarter with dairy and meat leading export price gains, outpacing an increase in import prices.

The terms of trade rose 1.5 percent in the second quarter from three months earlier, Statistics New Zealand said. Exports prices rose 2.4 percent and import prices rose 0.9 percent. The gain in the terms of trade undershot the forecast for a 3 percent gain in a Reuters survey while the first-quarter increase was revised down to 3.9 percent from a provisional estimate of 5.1 percent.

The trade-weighted index was little changed after the data was released at 75.19.

Statistics New Zealand said the first-quarter revision "mainly reflects a correction in the provisional price of forestry products" that will also "flow through to the expenditure measure of gross domestic product, but is not significant enough to change the overall story."

Dairy export prices rose 3.9 percent in the second quarter, led by butter reaching an all-time high and cheese, while milk powder fell slightly, Stats NZ said. Over the past two years, butter exports have been about 20 percent of the value of New Zealand’s dairy exports. Dairy prices are 40 percent higher than the recent low of September 2016, but are still 18 percent lower than the March 2014 high, it said.

Meat export prices rose 9.2 percent in the quarter to come within 1 of their record high of September 2015.

The gain in import prices was led by machinery and electrical equipment, which was offset by a 4.2 percent fall in petroleum and petroleum product prices.

Export volumes rose 6.8 percent while import volumes gained 2.3 percent, resulting in the overall value of exports rising 9 percent to $12.9 billion in the second quarter while the value of imports rose 2.9 percent to $13.5 million.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

12th November 2019 Morning Report
MARKET CLOSE: NZ shares gain, retirement villages buoyed by Auckland housing market bounce
NZ dollar rises, shrugging off US-China trade war woes
Long-serving ACC investment chief calls it a day
Institutional investors continue to shun Fonterra
Card spending stalls; dearer petrol crowds out other goods
Abano directors cave to takeover by scheme of arrangement
Fletcher dismisses subcontractor claims as vague
11th November 2019 Morning Report
Odds favour a rate cut but it's a line ball call

IRG See IRG research reports