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


Export Prices Rise Despite Exchange Rates

Export Prices Rise Despite Exchange Rates

Merchandise export prices increased by 0.2 percent in the March 2005 quarter, Statistics New Zealand said today. Rising world prices for many of our export commodities have more than offset the continued appreciation of the New Zealand dollar against most of our main trading partners' currencies.

The Reserve Bank Trade Weighted Index (TWI) was 1.4 percent higher in the March 2005 quarter. This was the first time the export price index and TWI have moved in the same direction since the September 2002 quarter, when export prices fell 3.8 percent and the TWI depreciated 1.3 percent.

The merchandise terms of trade rose 2.2 percent in the March 2005 quarter. The combined effect of falling import prices and rising export prices was reflected in the rise in the terms of trade index over the latest quarter, and means that more imports can be funded from a fixed quantity of exports.

A 2.1 percent rise in the meat index made the largest contribution to the overall increase in merchandise export prices in the March 2005 quarter. Higher prices for lamb were the major driver of this rise. The index for non-food manufactured goods rose 1.0 percent, mainly due to rising prices for casein and caseinates, while the forestry products index rose 1.6 percent, driven by rising prices for pinus radiata logs.

Seasonally adjusted merchandise export volumes fell 1.9 percent in the March 2005 quarter. The non-food manufactured goods index was the main contributor to the fall, down 6.5 percent. Commodities contributing to the decrease were methanol, sawn pinus radiata, whole milk powder and butter. @ Import prices fell 1.9 percent in the latest quarter, following a 1.6 percent fall in the December 2004 quarter. Falls in prices of petroleum and petroleum products (down 8.6 percent), mechanical machinery (down 3.7 percent), transport equipment (down 1.6 percent), and food and beverages (down 2.1 percent) were the main contributors to the fall in merchandise import prices. A further contributing factor was the strength of the New Zealand dollar against most of our major trading partners' currencies. Partly offsetting the falls were higher prices for textiles, clothing and footwear (up 1.0 percent).

The seasonally adjusted volume of merchandise imports rose 2.9 percent in the March 2005 quarter. Higher volumes of motor spirit and consumption goods were the main contributors to the rise in total import volumes. The total imports index is now at its highest level ever recorded.

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>>


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>>


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>>


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>>


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>>


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>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news