"Imported goods were at their highest value for any August month. These record levels for the imports and trade deficit were influenced by a one-off large capital import item."
- Louise Holmes-Oliver, industry and labour statistics manager
New Zealand posted the widest trade deficit in nearly six years, due to large one-off imports of railway wagons and a drilling platform from China. The trade gap widened to NZ$1.2 billion ($989 million) in August, while year to date the country has a trade deficit of NZ$2.06 billion, according to Statistics New Zealand. Both deficits were the biggest since September 2008. The headline figure was well shy of expectations for a shortfall of NZ$700 million, after the NZ$774 million deficit in July.
August normally sees a decline in exports due to the seasonal nature of dairy exports, and this year was not an exception. Exports rose a seasonally adjusted 0.6% on an annual basis to NZ$3.33 billion versus forecasts for NZ$3.54 billion and down from NZ$3.85 billion a month earlier. Meanwhile, imports soared an annual 9.7% to NZ$4.52 billion following the NZ$4.62 billion in the previous month.
The New Zealand Dollar slid versus major counterparts immediately after the data release, extending yesterday's biggest drop this month against the U.S. Dollar. The kiwi traded at 82.42 U.S. cents from 82.59 cents ahead of the report. So far this quarter, the nation's currency has gained 6.5% versus the greenback, the most among major currencies.
© Dukascopy Bank SA