| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | NZ$699M | NZ$204M | NZ$54M |
| Imports - M/M | -11.3% | 3.4% | 3.9% |
| Imports - Y/Y | -13.0% | 0.6% | 0.4% |
| Exports - M/M | -2.3% | 4.4% | 2.9% |
| Exports - Y/Y | -0.1% | 2.9% | 0.6% |
Highlights
New Zealand's merchandise trade surplus widened from NZ$54 million in May to NZ$699 million in June, though imports and exports both fell sharply after previous increases.
Exports fell 2.3 percent on the month in June after advancing 2.9 percent in May and fell 0.1 percent on the year after a previous increase of 0.6 percent. Exports of meat and fruit recorded solid year-over-year increases, offset by declines in exports of dairy products and forestry products. Exports to Australia, Japan, and China fell on the year, outweighing increases in exports to the European Union and the United States.
Imports fell 11.3 percent on the month in June, down sharply from an increase of 3.9 percent in May, and fell 13.0 percent on the year after a previous increase of 0.4 percent. Petroleum imports fell sharply on the year after increasing in each of the two previous months, accompanied by further weakness in imports of vehicles and mechanical machinery and equipment. Imports from the European Union and China rose on the year, offset by declines in imports from Australia, Japan, and the United States.
Exports fell 2.3 percent on the month in June after advancing 2.9 percent in May and fell 0.1 percent on the year after a previous increase of 0.6 percent. Exports of meat and fruit recorded solid year-over-year increases, offset by declines in exports of dairy products and forestry products. Exports to Australia, Japan, and China fell on the year, outweighing increases in exports to the European Union and the United States.
Imports fell 11.3 percent on the month in June, down sharply from an increase of 3.9 percent in May, and fell 13.0 percent on the year after a previous increase of 0.4 percent. Petroleum imports fell sharply on the year after increasing in each of the two previous months, accompanied by further weakness in imports of vehicles and mechanical machinery and equipment. Imports from the European Union and China rose on the year, offset by declines in imports from Australia, Japan, and 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.
