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Analysts at Australia and New Zealand Banking Group (ANZ) offer their afterthoughts on New Zealand’s Trade Balance report published earlier on Monday.

Key Quotes:

“Exports eased slightly in July but it was the large lift in imports that dragged the trade balance down to a deficit of $685 million. Deficits are normal during the winter months as agricultural export volumes are limited at this time of the season.

A surge in imports of petrol and machinery helped pushed the annual trade balance to -$5.46 billion.

 July delivered an unadjusted monthly trade deficit of $685m. Deficits are typical during the winter months, due to less dairy and meat products being exported. On an unadjusted basis export returns were down 5.8% YoY in July while imports were up 3.1%.  

Looking forward, export volumes in August will remain curtained by low seasonal production and reduced felling of trees.

By September the seasonal lift in dairy production will begin to improve export returns but this will be partially offset by lower than normal exports of meat and logs.”