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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news