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

 


NZ record smallest October trade deficit since mid-1990s

NZ record smallest October trade deficit since mid-1990s, on record exports for month

Nov. 27 (BusinessDesk) – New Zealand posted its smallest October trade deficit since the mid-1990s as milk powder, butter and cheese shipments drove exports to a record for the month.

The trade deficit narrowed to $168 million last month, from $216 million in September, narrowing the annual trade gap to $1 billion from $1.55 billion, according to Statistics New Zealand. The trade figures compared to a forecast deficit of $350 million in the month and $1.14 billion in the year in a Reuters survey.

Exports rose by 23 percent, or $783 million, to $4.2 billion in October compared to the same month last year, of which $690 million reflected increased exports of milk powder, butter and cheese, which jumped by 85 percent to $1.5 billion.

In September, Fonterra Cooperative Group raised its forecast 2014 payout to a record $8.62, made up of a farmgate milk price of $8.30 and an unchanged dividend of 32 cents, citing continuing global demand for whole milk powder. The value of milk powder, butter and cheese climbed 4.6 percent in the 12 months through October to $12.2 million, making up 26 percent of total exports of $46.8 billion in the period.

China was the biggest destination for New Zealand’s exports last month, taking $1.1 billion worth, up 133 percent from a year earlier. Shipments to Australia fell 13 percent to $794 million. On an annual basis, Australia is still the largest market, taking $9.18 billion of exports, while China took $8.87 billion and the US took $4.1 billion.

“We expect to see this trend maintained over the coming months, as the strong rebound in agricultural (and in particular dairy) production since last summer's drought, coupled with strong commodity prices, is reflected in higher export revenues” said Anne Boniface, senior economist at Westpac Banking Corp.

Imports rose 5.7 percent to$4.4 billion, led by vehicles, parts and accessories.

China was the largest source of imports, rising 9.2 percent to $797 million in the month and 4.4 percent to $8.1 billion in the year. Imports from Australia fell 1.9 percent to $613 million and fell 7.8 percent to $6.6 billion in the year. Imports from the US rose 11 percent to $408 million in October from a year earlier and fell 5 percent to $4.4 billion in the year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news