Friday 1st June 2012
|Text too small?|
New Zealand's terms of trade fell in the first three months of the year as a decline in commodity prices weighed on exports, with dairy prices falling for the third straight quarter even as volumes rose.
The terms of trade, which measures how much imports can be bought with a fixed quantity of exports, fell 2.3 percent in the three months ended March 31, according to Statistics New Zealand. That’s a smaller decline than the 3 percent forecast in a Reuters survey. Export volumes fell 0.6 percent against an expectation of a 0.7 percent increase, while export prices dropped 3.8 percent
Prices of dairy products fell 5.6 percent in the first quarter, making the biggest downward contribution to the terms of trade. The fall follows a slide in prices in Fonterra Cooperative Group’s GlobalDairyTrade sales this year which prompted the world’s largest exporter of dairy products to cut its forecast 2012 milk price payout and flag lower payments in 2013.
Fruit export prices fell 7.3 percent, mainly reflecting weaker prices for apples. Forestry products fell 4.2 percent and meat declined 3.6 percent.
Import prices fell 1.5 percent in the first quarter, less than the 2.1 percent drop forecast by economists and helping offset the slide in export prices. Prices of transport equipment imports fell 2.3 percent in the March quarter, leading the decline. Mechanical machinery import prices fell 1.8 percent and electrical machinery dropped 2.6 percent.
Terms of trade for services rose 1.8 percent.
No comments yet
Plexure sees revenue growth from White Castle deal
22nd July 2019 Morning Report
NZ dollar treading water as markets focus on Iran
MARKET CLOSE: NZ shares extend gain as passive funds bolster prices; Tourism Holdings climbs
NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured