New Zealand posted a merchandise trade deficit of NZ$649 million in July, Statistics New Zealand said on Wednesday – representing 15 percent of exports.
The headline figure missed expectations for a shortfall of NZ$600 million following the NZ$60 million deficit in June.
Exports climbed 14.0 percent on year to NZ$4.20 billion – well above forecasts for NZ$3.83 billion although down slightly from NZ$4.23 billion in the previous month.
Fruit exports led the rise, up 51 percent (NZ$105 million) to NZ$311 million. Meat exports climbed NZ$99 million (24 percent) to NZ$505 million in July 2015 when compared with the same month last year. The rise was led by beef, up NZ$70 million (40 percent).
Milk powder, butter, and cheese exports showed little change, up NZ$0.9 million (0.1 percent) to NZ$932 million. Increases in cheese, dairy spreads, and milk protein concentrates offset the fall in milk powder exports (down NZ$76 million).
“The small rise in dairy export values combined with the falling New Zealand dollar contributed to the rise in total exports value this month,” international statistics senior manager Jason Attewell said. “A weaker dollar means that exporters receive more New Zealand dollars for transactions in foreign currencies while imports cost more.”
Imports advanced an annual4.8 percent to NZ$4.85 billion versus expectations for NZ$4.40 billion and up from NZ$4.29 billion a month earlier.
Consumption goods jumped NZ$176 million and capital goods advanced NZ$161 million. Intermediate goods fell NZ$96 million, led by crude oil.
For the year ended July 2015, the annual goods trade deficit was NZ$2.7 billion.
The material has been provided by InstaForex Company – www.instaforex.com