Oil exports versus imports delivered a surprisingly strong trade surplus for the month of July for the first time in 20 years.
Exports totalled $3.72 billion in July while imports were $3.59 billion. The trade surplus of $129 million in July was equal to 3.5% of the value of exports, Statistics New Zealand said yesterday.
"This is the first July surplus since 1991 and compares with an average July deficit of 18% of the export value over the previous five years," SNZ said.
ASB economist Jane Turner said the trade balance was stronger than expected, posting a seasonally-adjusted surplus of $338 million in July, up from $160 million in June.
"The July trade surplus was surprisingly strong, although it appears to be due to temporary weakness in oil imports.
"Exports have held up well to date, with commodity and manufacturing exports both continuing to perform well over the past year," she said in a statement yesterday.
She said the stronger result was largely due to surprising weakness in imports, in particular oil, which posted a surprisingly sharp decline.
"Oil imports tend to be volatile and lumpy, and as a result are likely to bounce back in coming months," she said.
Exports were up 4.7% and imports down 4% compared with the corresponding month a year ago.
SNZ noted an increase in milk powder, butter and cheese exports and a decrease in the export of pleasure yachts.
The annual trade surplus widened to $1.3 billion, compared with expectations of a $1.1 billion surplus. ANZ said there could be a return to merchandise trade deficits because the global economy was fragile.
Capital goods imports increased $100 million, or 18%, due to an increase in machinery and plant, up $72 million, or 14%, led by portable computers and electrical transformers.
Transport equipment also increased, up $29 million, or 41%.
- Additional reporting NZPA
