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

 

Bad Day For Rope: Donaghys Job Losses Another Blow To Dunedin

The loss of 30 jobs from Donaghys rope and twine factory is yet another blow to the people and economy of Dunedin, says Dunedin South Labour MP Clare Curran. More>>

ALSO:

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

WWF Report: Solutions In Reach; World Biodiversity Suffers Major Decline

Global wildlife populations have declined by more than half in just 40 years as measured in WWF's Living Planet Report 2014. Wildlife's continued decline highlights the need for sustainable solutions to heal the planet... More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news