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

 

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