New Zealand Trade Shortfall NZ$789 Million In August

New Zealand Trade Shortfall NZ$789 Million In August


New Zealand posted a seasonally adjusted merchandise trade deficit of NZ$789 million in August, Statistics New Zealand said on Wednesday - representing 24 percent of exports.
The headline figure was well shy of forecasts for a shortfall of NZ$630 million after posting an upwardly surplus of NZ$97 million in July. This compares with a deficit of $690 million (20 percent of exports) in August 2011.
Exports were down 3.4 percent on year to NZ$3.32 billion - also missing expectations for NZ$3.55 billion after coming in at NZ$4.00 billion in the previous month.
Mechanical machinery and equipment and crude oil had the largest decreases.
The value of exports to Australia - New Zealand's largest export destination - fell $172 million (17 percent) in August 2012 compared with August 2011, Statistics New Zealand said. The fall was led by petroleum and products.
"Lower exports to Australia contributed to the overall fall in export values," industry and labor statistics manager Neil Kelly said. "But an increase in exports to China, led by dairy products, partly offset the fall."
Imports fell an annual 0.4 percent to NZ$4.10 billion, in line with forecasts after showing NZ$3.99 billion a month earlier.
Seasonally adjusted exports fell 8.0 percent compared with July 2012. There was a large fall in seasonally adjusted milk powder, butter, and cheese exports, which followed two large increases in June and July. Seasonally adjusted imports fell 1.3 percent.
The trend for exports appears to have been increasing since March, while the trend for imports has been flat in recent months. The trend for imports is 6.0 percent lower than its record level in September 2008.
Upon the release of the data, the New Zealand dollar edged down against major rivals, trading near 0.8200 against the U.S. dollar, 1.5742 versus the euro, 63.81 against the yen and 1.2659 versus the Australian dollar.