Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Overseas Trade Price, Volume and Terms of Trade

Overseas Trade Price, Volume and Terms of Trade Indexes: December 1999

Export Improvement Price Driven

Figures released today by Statistics New Zealand show that the increase in merchandise export values in the December 1999 quarter was due to increased export prices, which rose by 3.2 per cent. Seasonally adjusted export volumes fell 1.9 per cent this quarter.

Merchandise exports price indexes have risen for the third consecutive quarter and have been generally increasing since June 1997 quarter. The latest increase reflects continued higher prices for certain basic commodities such as forestry products, fish and crude oil and some recovery in wool prices. Also contributing to the latest increase in prices was the lower New Zealand dollar against our major trading partners.

When seasonal variation is removed, total merchandise export volumes fell 1.9 per cent in the December 1999 quarter. The index has been volatile in the 1999 calendar year, fluctuating from quarter to quarter. Most seasonally adjusted volume indexes fell, with the largest falls in fish, wool and non-fuel crude materials. Dairy product volumes continue to rise due to good growing conditions experienced this season.

The merchandise imports price index rose strongly by 5.5 per cent this quarter, influenced by a continuation of increasing crude oil prices and the depreciation in the New Zealand dollar. As expected, petroleum and plastic prices (both products use crude oil) rose this quarter due to restrictions in international crude oil supply over the 1999 year and the lower New Zealand dollar. The imports price index has risen strongly since the March 1997 quarter and is now at its highest recorded level. A small fall in prices for electrical machinery was the only significant exception to the across-the-board increases.

Seasonally adjusted total merchandise import volumes recorded an increase of 14.0 per cent in the latest quarter. However, the seasonally adjusted total merchandise import volumes would have been flat without the importation of the frigate HMNZS Te Mana and aircraft.

Export and import prices for both the merchandise and services indexes increased strongly this quarter. Prices of exports of services rose by 1.7 per cent and prices of imports of services rose by 2.2 per cent. Both merchandise and services terms of trade indexes fell this quarter, because import prices rose more than export prices. The merchandise terms of trade index fell 2.2 per cent and the services terms of trade index fell 0.4 per cent this quarter.

Exchange rate movements contributed to the rises in both export and import services indexes, with the New Zealand dollar depreciating against all major currencies in the December 1999 quarter. The exchange rate effect has less influence on services export prices as many of the services such as travel are transacted in New Zealand dollars.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade: NZ Trade Deficit Widens To A Record In September

Oct. 27 (BusinessDesk) - New Zealand's monthly trade deficit widened to a record in September as meat exports dropped to their lowest level in more than three years. More>>


Animal Welfare: Cruel Practices Condemned By DairyNZ Chief

DairyNZ chief executive Tim Mackle says cruel and illegal practices are not in any way condoned or accepted by the industry as part of dairy farming.

Tim says the video released today by Farmwatch shows some footage of transport companies and their workers, as well as some unacceptable behaviour by farmers of dragging calves. More>>


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


International Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news