New Zealand's trade deficit for August is down on the previous years' average at 19% of the value of exports, or $641 million.
There was a $523 million rise in imports, led by petroleum and crude, oil and imported railway stock, while exports rose by $313 million, largely due to meat, edible offal, crude oil, milkpowder, butter and cheese, Statistics New Zealand (SNZ) Government Statistician Geoff Bascand said.
The month of August was normally in deficit, and this year's result of the deficit being 19% of export values, compares with an average deficit for August of 27% for the previous five August months.
ASB economist Jane Turner said the trade balance was larger than expected, with its deficit of $641 million, but that was largely seasonal, as agricultural exports started to decline.
"The seasonally-adjusted trade balance remained in surplus by $27 million," Ms Turner said in a statement yesterday.
The larger deficit in August was due to stronger-than-expected imports, which increased 3.1% on a seasonally-adjusted basis.
She said SNZ had noted imports of vehicles, machinery and equipment contributed to the increase in imports, but those items could be "relatively lumpy", she said.
The strength of the New Zealand dollar during August suggested import prices were likely to be relatively muted.
"As a result, the strength in August figures implies strong volume growth. This is consistent with continued recovery in underlying domestic demand during the second half of the year," Ms Turner said.
China was the largest market for increased export receipts, up 47% ($117 million) in August, led by log exports; exports to Australia were up 12%, thanks primarily to crude oil exports for refining across the Tasman.
Gold kiwifruit helped push exports to South Korea up 30%, or $28 million, while the United States showed the largest decrease, down 9.8%, spread across several commodities.
Imports from China were also up the most from any country, increasing 14% in a month when KiwiRail took delivery of new Chinese-built rolling stock, while an 8.2% increase in imports from Australia was led by cereals and raw sugar.
Trading off
Exports v. imports
• Merchandise imports were up $523 million (15%), to $4.1 billion. The increase in imports was led by petroleum and products, up $206 million.
• Merchandise exports were up $313 million (10%), to $3.4 billion.
• Meat, crude oil, and dairy commodities led the rise in exports.
SOURCE: Statistics New Zealand
