| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$-2,329M | NZ$-2,291M | NZ$-2,273M |
| Imports - M/M | 1.5% | 0.4% | 0.1% |
| Imports - Y/Y | -14.6% | -8.1% | -8.5% |
| Exports - M/M | -1.7% | 13.7% | 13.3% |
| Exports - Y/Y | -17.6% | -5.6% | -5.9% |
Highlights
New Zealand's merchandise trade balance widened from a revised deficit of NZ$2,273 million in August to NZ$2,329 million in September. Exports fell on the month after a previous strong increase, while growth in imports picked up. Today's data, in particular, show ongoing weakness in Chinese demand for New Zealand exports.
Exports fell 1.7 percent on the month in September after increasing 13.3 percent in August and dropped 17.6 percent on the year after a previous decline of 5.9 percent. Exports of meat, dairy products, fruit, and forestry products all recorded large year-over-year declines, offset by solid increases in exports of some manufactured products. Exports to all major trading partners fell on the year, with exports to China and the European Union particularly weak.
Imports rose 1.5 percent on the month in September after increasing 0.1 percent in August and fell 14.6 percent on the year after a previous decline of 8.5 percent. Imports of diesel and petrol again fell sharply on the year, reflecting the base effects of a surge last year following the closure of New Zealand's sole domestic oil refinery. Imports of vehicle parts rose on the year but most other major categories of imports recorded sizeable declines. Imports fell on the year from China, Australia, and Japan, partly offset by an increase in imports from the United States.
Exports fell 1.7 percent on the month in September after increasing 13.3 percent in August and dropped 17.6 percent on the year after a previous decline of 5.9 percent. Exports of meat, dairy products, fruit, and forestry products all recorded large year-over-year declines, offset by solid increases in exports of some manufactured products. Exports to all major trading partners fell on the year, with exports to China and the European Union particularly weak.
Imports rose 1.5 percent on the month in September after increasing 0.1 percent in August and fell 14.6 percent on the year after a previous decline of 8.5 percent. Imports of diesel and petrol again fell sharply on the year, reflecting the base effects of a surge last year following the closure of New Zealand's sole domestic oil refinery. Imports of vehicle parts rose on the year but most other major categories of imports recorded sizeable declines. Imports fell on the year from China, Australia, and Japan, partly offset by an increase in imports from the United States.
Definition
The international trade balance measures the difference between imports and exports of both tangible goods and services. Imports may act as a drag on domestic growth and they may also increase competitive pressures on domestic producers. Exports boost domestic production. Trade balance values are calculated by deducting imports (cif) from exports (fob).
Description
Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect the value of the NZ dollar in the foreign exchange market. Imports indicate demand for foreign goods in New Zealand. Exports show the demand for NZ goods in countries overseas. The currency can be sensitive to changes in the trade deficit run by New Zealand since this trade imbalance creates greater demand for foreign currencies. The bond market is also sensitive to the risk of importing inflation.
