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

 


Terms of Trade Rise in March Quarter


Terms of Trade Rise in March Quarter

The merchandise terms of trade rose 1.7 percent in the March 2003 quarter, according to latest Overseas Trade Indexes released by Statistics New Zealand.

This is the first rise since the March 2002 quarter and is due to import prices falling more than export prices. An increase in the terms of trade means that more imports can be funded by a fixed quantity of exports.

Prices for merchandise exports decreased 2.7 percent in the March 2003 quarter and import prices fell 4.4 percent. These falls were influenced by a 7.2 percent rise in the value of the New Zealand dollar in the March 2003 quarter as measured by the trade weighted index (TWI).

Price decreases for forestry products (down 6.6 percent), meat (down 4.0 percent), and fruit and vegetables (down 12.0 percent) were the main contributors to the fall in export prices in the March 2003 quarter.

Dairy prices fell a relatively small 0.9 percent, limiting the size of the overall fall in export prices. Price falls were recorded in most of the import series, with lower prices for mechanical machinery (down 6.7 percent), transport equipment (down 4.6 percent) and electrical machinery and apparatus (down 8.4 percent) having the greatest impact.

Seasonally adjusted merchandise export volumes rose 1.9 percent in the March 2003 quarter following a 1.5 percent increase in the December 2002 quarter.

The main contributing sub-indexes were meat (up 11.2 percent) and non-food manufactures (up 1.4 percent), which were partly offset by a fall in dairy product volumes (down 3.9 percent). Seasonally adjusted merchandise import volumes fell 1.0 percent in the December 2002 quarter, following sustained growth in the previous five quarters.

The largest contributor to the fall was the intermediate goods index (down 3.3 percent) largely due to a decline in the total parts and accessories sub-index.

The volume of capital goods and passenger motor cars also fell this quarter, down 24.9 percent and 8.7 percent respectively. Partly offsetting these was a 3.9 percent rise in consumption goods volumes.


The terms of trade for services rose 5.9 percent in the March 2003 quarter, recording its sixth consecutive quarterly increase. This was due to import prices falling 5.8 percent while export prices were flat (down 0.1 percent) in the latest quarter.

Brian Pink

Government Statistician


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news