Trade balance back in deficit

New Zealand: trade balance back in deficit, but focus now on RBNZ statement

* Imports rose due to large one-off purchases

* Exports weaker than expected, hit by stronger NZD

* Lower commodity prices to drag exports lower

New Zealand’s trade balance fell into deficit in June for the first month in five, falling to –NZ$417 million (J.P. Morgan NZ$350 million, consensus NZ$215 million) from an upwardly revised surplus of NZ$907 million in May (previously NZ$858 million). The unexpected deficit primarily owed to the purchase of aircraft, which drove a stronger than expected rise in imports in June, which most punters (including ourselves) thought would hold steady. With the one-off aircraft purchases removed, the trade balance would have been a surplus of NZ$154 million.

Full Trade Balance Update (pdf)

ENDS

© Scoop Media