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

 


NZ terms of trade edges closer to all-time high

NZ terms of trade edges closer to all-time high

By Jonathan Underhill

June 3 (BusinessDesk) - New Zealand’s terms of trade edged closer to an all-time high in the first quarter as dairy products led a gain in export prices and petroleum products led import prices lower.

Terms of trade, which measures the quantity of imports the country can buy with a set amount of exports, gained 1.8 percent in the fourth quarter to the highest level since September 1973, according to Statistics New Zealand. It is now just 1.7 percent below its all-time high in the June 1973 quarter. The quarterly gain matched expectations in a Reuters survey.

The terms of trade may be close to peaking, as prices of dairy products have tumbled 23 percent on the GlobalDairyTrade platform in the past four months. Dairy prices rose 2.3 percent in the first quarter and have gained 42 percent in the year to be within 4.7 percent of a record level reached in the fourth quarter of 2008, today's figures showed. Dairy led a 4 percent drop in the ANZ Commodity Price Index in April, to an eight-month low, and data for May, due out tomorrow, is expected to show prices fell further.

"There will be some correction" in the terms of trade, said Robin Clements, senior economist at UBS New Zealand. "They will still remain very high compared to historical trends" but "the momentum of growth, the contribution to nominal GDP, will be down."

Export prices overall rose 0.8 percent in the first quarter. Among other gainers, meat advanced 2.1 percent and was up 6.6 percent in the year, to be 9.7 percent below its June 2011 peak. Forestry prices gained 1.6 percent in the quarter and 10 percent in the year.

Import prices declined 1 percent, led by a 3.5 percent drop in petroleum products, which were also down 3.5 percent in the year. Electrical machinery import prices fell 1.8 percent in the quarter and 12 percent in the year. Prices of fertiliser jumped 17 percent in the first quarter to be down 14 percent in the year.

Export volumes rose 1.6 percent in the first quarter, led by meat while import volumes gained 2.3 percent.

The trade-weighted index was recently at 78.98, down from 79.19 immediately before the data was released. The TWI rose 1.8 percent in the first quarter, which has a downward influence on both export and import prices.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news