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Analysts at ANZ note that the New Zealand’s unadjusted monthly trade deficit came in wider than expected at $1,484m  – the widest monthly deficit on record, driving the annual deficit wider by 300m to $4.8bn, in contrast to ANZ’s expectation for a narrowing.  

Key Quotes

“Seasonally adjusted export values fell 4.7% m/m,  as strength in July’s dairy export values more than fully unwound in August. Dairy values fell 29.3% m/m, owing largely to a 27.5% drop in volumes.”

Seasonally adjusted import values fell less than exports, down 3.4% m/m.”

Despite recent slippage in world prices for some of our key exports, the annual deficit is expected to narrow over the year ahead  as dairy volumes continue to recover on last year and the weaker NZD provides some offset to weaker world export prices and constrains import volumes growth.”