- Nathan Penny, ASB rural economist
New Zealand's merchandise trade shortfall widened slightly last month from a year earlier, as a precipitous decline in value of overseas shipments of milk powder affected exports. The country logged a NZ$3.24 billion deficit for the 12 months to October. The decline was led by a 29% decline in the value of milk powder exports as prices fell. Measured on a monthly basis, the trade gap narrowed from a revised NZ$1.14 billion in September to NZ$963 million, Statistics New Zealand reported. Exports dropped 4.5% year-on-year to NZ$3.83 billion in October, driven by a 29% plunge in milk powder. Dairy exports overall plummeted 18% last month compared with October a year earlier. China outperformed Australia and became New Zealand's top annual export destination in October. Goods exports to China increased 9.2% to $678 million in October from the year earlier month, taking annual exports to the country to $8.41 billion. At the same time, exports to Australia plunged 8% to $754 million in the month, for an annual total of $8.36 billion.
Meanwhile, imports dropped 2.2% to $4.79 billion in October from the year earlier month, led by declines in petrol, avgas as well as capital goods.
© Dukascopy Bank SA