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

 


NZ posts 7th monthly trade surplus in May

NZ posts seventh monthly trade surplus in May, led by demand for dairy products

By Tina Morrison

June 27 (BusinessDesk) - New Zealand posted its seventh monthly trade surplus in May, led by overseas demand for the nation's primary products such as milk powder, butter and cheese.

The country had a trade surplus of $285 million in May, from $498 million in April and $40 million a year earlier, Statistics New Zealand said. The annual trade balance turned to a surplus of $1.37 billion from a deficit of $901 million a year earlier. The trade figures lagged expectations for a monthly surplus of $300 million and an annual surplus of $1.43 billion in a Reuters poll of economists.

Demand for primary products from an expanding and wealthier Chinese economy has spurred demand for New Zealand exports. China held its position as New Zealand's top trading partner, with annual two-way trade between the nations exceeding $20 billion for the first time, ahead of the government's 2015 target.

Exports rose 13 percent to $4.6 billion in May from the year earlier month, led by dairy exports to China. The statistics agency said it appeared the growth in exports seen in the past year has levelled off. Expanding global milk supply and a drop in buying by Chinese importers as they run down inventories has weighed on dairy prices this year.

"Lower dairy prices are now starting to come through in the trade data," Westpac Banking Corp senior economist Felix Delbruck said in a note. "We expect further price falls to come through in the June trade figures."

Imports increased 7 percent to $4.3 billion In May from the year earlier month, led by imports of trucks and machinery including cranes and excavators.

The New Zealand dollar initially spiked higher following the trade data, touching a fresh three-year high of 87.94 US cents, from 87.76 cents immediately before the 10:45am release. It then retraced, recently trading at 87.78 cents.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news