WELLINGTON: New Zealand’s trade surplus increased to NZ$350m in May, far surpassing economists’ expectations for a NZ$100m deficit. Furthermore, this was an increase from a NZ$183m surplus in April, which had been revised higher from NZ$123m.
It means the Kiwi economy has yet to post a monthly trade deficit this year, with the previous one being in December (and six straight months of it, in fact).
Both sides of the trade equation helped that result. Exports increased to NZ$4.36bn, slightly ahead of expectations for NZ$4.3bn, while imports decreased to NZ$4.01bn versus expectations for NZ$4.3bn.
“Despite dairy exports falling, they accounted for one-fifth of total goods exports in May,” said Jason Attewell at Statistics New Zealand. “At its peak, dairy made up two-fifths of total goods exports.”
In percentage terms, the rate of decline in exports slowed to -4.7 per cent in May year-on-year from -6.2 per cent in April. Imports have fallen 7 per cent over the 12 months to May 31, a sharp drop from the 0.3 per cent pace in April.
Revisions to the April data saw exports trimmed to NZ$4.13bn from NZ$4.17 previously, and imports were NZ$3.95bn from the earlier estimate of NZ$4.04.
Despite beating forecasts, the New Zealand dollar did not take an immediate shine to the numbers, but it has since regained some poise to be 0.3 per cent lower at US$0.6895 in early trade. This still leaves the currency precariously close to extend its record weekly losing streak to 10.
