Wednesday 25th July 2018
|Text too small?|
Rising demand for imported goods has pushed New Zealand's trade balance to its widest deficit for a June year in a decade, Statistics New Zealand said.
The country's annual trade deficit widened to $4 billion in the June year, from a deficit of $3.66 billion a year earlier, Stats NZ said. Annual imports increased by $6.02 billion to $59.55 billion, while exports rose by $5.65 billion to $55.52 billion.
“The last June year surplus was in 2014, driven by high dairy export values,” acting international statistics manager Dave Adair said. “Exports dipped in 2015 leading to a deficit, which has widened since due to steadily rising imports.”
The latest rise in annual imports was led by $24 billion of intermediate goods, up $3 billion from the year earlier, the statistics agency said. Petroleum and products, excluding petrol, led the intermediate goods rise, up by $850 million. This was followed by parts of transport equipment, up $416 million, and parts of plant and machinery, up $413 million.
The gain in annual exports was mostly due to an increase in dairy products, the country's largest export commodity group, which rose by $1.65 billion to $14.16 billion. That was followed by a $1.01 billion gain in the value of meat and edible offal exports to $7.05 billion, and a $740 million increase in the value of forestry product exports to $4.96 billion.
For the June month, New Zealand imports jumped to $5.02 billion from $4.45 billion in June last year, and marking the highest ever level for a June month. The increase was led by petroleum and products, which gained $257 million as fuel imports rose by $300 million while crude oil fell by $35 million, Stats NZ said.
The value of exports in June rose $217 million to $4.91 billion, led by a $58 million increase in the value of meat and edible offal exports as lamb exports to China rose $26 million. Kiwifruit and preparations of milk, cereals, flour, and starch also contributed to the exports rise.
The export gains were partly offset by an $84 million decline in the value of milk powder, butter, and cheese exports in the month to $1.12 billion. Milk powder exports fell by $162 million, or 25 percent, as the quantity dropped 32 percent due to falls across a range of key markets, including large falls to Algeria and China. However, milk fat exports including products like butter were up $93 million.
The monthly trade balance was a deficit of $113 million, compared with a surplus of $243 million in June last year and only the second deficit for a June month in the last decade.
No comments yet
MARKET CLOSE: NZ shares dip as global trade jitters weigh on A2, F&P
NZ dollar set for weekly gain after Reserve Bank surprise
Burger Fuel exploring sale after review questions listing merits
New net migration data to remain rubbery for quite some time
NZX to push sales this year after reshaping business dents 2018 profit
Slowing new orders growth weighs on January PMI
New NZ dry dock a basis for new industry - KiwiRail
Wellington Drive beats 2H sales forecast, will meet earnings guidance
NZIQS decides more training is the answer to past president's misconduct
February 15th Morning Report