NZ posts first trade surplus for July month in five years as dairy prices lift

Thursday 24th August 2017

New Zealand recorded its first trade surplus for a July month in five years as exports of milk powder, butter and cheese soared 51 percent.

The country had a trade surplus of $85 million in July, which is the first surplus for the month since 2012 when a $98 million surplus was recorded, and only the 11th July surplus since 1960, Statistics New Zealand said. It compares with a deficit of $351 million in July last year, when the figures were impacted by a large aircraft import.

Exports rose 17 percent to $4.63 billion in July compared with the same month a year earlier, while imports advanced 5.4 percent to $4.55 billion, the agency said.

The monthly trade balance was helped by a recovery in dairy export prices with shipments of milk powder, butter and cheese products jumping to $1.27 billion from $840 million a year earlier, with the monthly gain in dairy the largest for any month since March 2014.

"July months are typically deficits," said Stats NZ overseas trade manager Tehseen Islam.

Exports of meat and edible offal, the country's second-largest commodity export, jumped 23 percent to $500 million, while exports of logs, wood and wood articles, the third-largest group, advanced 12 percent to $391 million, and fruit exports rose 15 percent to $328 million, Stats NZ said.

On the other side of the ledger, the rise in goods imports into New Zealand was largely influenced by a 25 percent jump in vehicles, parts and accessories to $768 million, with imports of passenger motor cars exceeding $500 million for the second consecutive month. Imports of aircraft and parts slumped 84 percent to $51 million, reflecting a large import in July last year, the agency said.

Meanwhile, the annual deficit in the year to July was $3.21 billion versus $3.65 billion in the year to June.

(BusinessDesk)

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