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

 

NZ first quarter terms of trade rebound

NZ first quarter terms of trade rebound on strong dairy volumes

By Rebecca Howard

June 4 (BusinessDesk) - New Zealand's terms of trade rebounded in the first quarter on record export volumes of dairy products and cheaper imported fuel.

The terms of trade, which measures the purchasing power of New Zealand's exports relative to imports, rose 1 percent in the three months to March 31 reversing some of the 3.2 percent fall in the three months to December 31, Stats NZ said.

The terms of trade is an indicator of the state of the overall economy, with the first quarter lift meaning New Zealand can buy more imports for the same amount of exported goods.

Economists had been expecting a rise of 0.5 percent, according to the median in a Bloomberg poll. The New Zealand dollar was largely unchanged after the release, trading at 65.97 US cents.

Export volumes rose 5 percent in the quarter but export prices fell 2.6 percent. Both were strongly influenced by dairy - which accounted for more than 25 percent of all goods exported in the March quarter. The strong volumes meant that the total value of exported goods was up 2.3 percent to $14.3 billion.

“Total export volumes are at their highest level since the series began in 1990, reflecting higher dairy volumes in the March quarter, after adjusting for seasonal effects," business prices delivery manager Sarah Johnson said.

Dairy export volumes lifted a seasonally adjusted 19 percent in the March quarter, but the value of dairy exports rose a more modest 9.5 percent because prices were weaker, Stats NZ said.



Import volumes were up 1.2 percent but import prices were down 3.5 percent, Stats NZ said. The total value of imported goods was down 0.6 percent at $15.4 billion.

Fuel import prices fell 20 percent in the March 2019 quarter, reflecting much lower prices for petroleum and related products. Crude oil prices were down 21 percent, while petrol prices were down 26 percent. Diesel prices were also down 15 percent this quarter.

Lower fuel prices were a key driver in the drop in overall import prices, Stats NZ said.

“Crude oil import volumes have been steady over the last five years, whereas the value of crude oil imports has been highly influenced by the price,” Johnson said.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reference Group Proposal: Motorists, MTI Support Ban On Less Safe Car Imports

A proposal to ban some used car models from being imported into New Zealand is being welcomed by the Motor Industry Association, which says Japan's scraps are being sent here for waste disposal. More>>

ALSO:

Expenses Investigation: ANZ Boss Departs Under Cloud

Last month the bank said chief executive David Hisco was taking extended leave for health reasons. However, today it has said in addition to the health issues, the board was concerned about certain transactions after reviewing Mr Hisco's personal expenses. More>>

ALSO:

Wider Net Ban, Other Threats: Plan To Expand Protection For Maui And Hector’s Dolphins

The Government is taking action to expand and strengthen the protection for Māui and Hector’s dolphins with an updated plan to deal with threats to these native marine mammals. More>>

ALSO:

Fish & Game Support: Canterbury Officer Of Health Warns On Nitrates In Water

"Nitrate testing of 114 drinking water samples from across the Canterbury plains showed that more than half of them were above the level considered safe in the world's largest ever study on the impacts of nitrates in drinking water." More>>

ALSO: