NZ annual trade surplus widens as tepid economy restrains imports

Friday 29th October 2010

New Zealand’s annual traded surplus widened last month as the nation shipped more dairy products, logs and crude oil while a tepid domestic economy constrained imports.

The trade surplus was $921 million in the 12 months ended Sept 30, from a revised surplus of $892 million in the year through August, according to Statistics New Zealand. The monthly traded deficit was $532 million, up from a gap of $413 million in August.

Exports in September rose 12% to $3.16 billion, for an annual increase of 0.5% to $41.8 billion. Monthly imports rose 9.1% to $3.69 billion for an annual decline of 5.5% to $40.88 billion.

Reserve Bank Governor Alan Bollard yesterday pointed to weak consumer spending and a soft property market as households pay down debt. Companies including courier firm Freightways have been telling shareholders that the domestic economy is making only a gradual recovery, which may constrain demand for imported goods.

Imports of mechanical machinery fell 10% in the latest year, electrical machinery fell about 17% and textiles declined 3.1%.

Exports of milk powder climbed 7.5%, logs and wood rose 16% and crude oil shipments gained 17%. Exports to China showed the most growth, rising 44% in the month and 22% in the year to cement that country’s place as the No. 2 market for New Zealand goods.

Exports to Australia, the biggest market, rose 1.1% in the month for an annual increase of 7%.

Businesswire.co.nz

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