WELLINGTON: The trade gap was NZ$60m in June — the first June deficit since 2009 — against forecasts for a NZ$100m surplus. The deficit marks a substantial fall from the NZ$371m surplus one month earlier, which had been inflated by lower crude oil prices.
Some of the report’s details, however, are optimistic. The reason for the surprise deficit was not that exports underwhelmed, but that imports were better than expected, reflecting higher consumption patterns.
Imports were NZ$4.29bn in June, up from NZ$3.99bn a month before and ahead of forecasts at NZ$4bn. The gain was led by consumption goods from China, including clothing, and machinery and plant from China, including mobile phones.
Exports in the month were NZ$4.23bn, ahead of forecasts at NZ$4.05bn. “Overall goods exports rose 1.3 per cent (NZ$56 million) in June 2015, despite milk powder, butter, and cheese exports being down NZ$320 million. Logs (up NZ$112 million), meat (up NZ$89 million), and fruit (up NZ$87 million) led the rise,” the report said.
Statistics New Zealand noted goods exports to China rose NZ$20m from a year earlier — the first such gain since August 2014 — to NZ$699m.
Over 12 months the trade deficit was NZ$2.85bn, the biggest gap since July 2009. The second-quarter deficit was $NZ460m, a fifth straight quarterly decline.
