NZ October trade deficit $NZ487m

The value of New Zealand imports fell more quickly than the value of exports last month, but not enough to prevent a $NZ487 million ($A382.7 million) trade deficit.

Figures from Statistics New Zealand (SNZ) on Friday showed exports in October were valued at $NZ3 billion ($A2.36 billion), down $NZ859 million ($A675.02 million) or 22.4 per cent from a year earlier.

Imports fell $NZ1.4 billion ($A1.1 billion) or 28.3 per cent from October 2008 to $NZ3.5 billion ($A2.75 billion).

The October trade deficit amounted to 16.4 per cent of the value of exports, compared to an average October deficit of 30 per cent of exports for the previous five years.

For the year to October the annual trade deficit was $NZ1.2 billion ($A942.99 million), amounting to 2.9 per cent of exports, which was about a fifth of the average of 16.2 per cent of exports for the preceding five October years.

The fall in exports in the month of October was widespread with whole milk powder exports down $NZ126 million ($A99.01 million) or 35.1 per cent, due to lower prices, while quantities exported rose 36.4 per cent, SNZ said.

Cheese exports were down $NZ92 million ($A72.3 million) from a year earlier, and anhydrous milk fat down $NZ37 million ($A29.08 million).

Crude oil exports fell $NZ138 million ($A108.44 million) or 55.2 per cent last month compared to October 2008, with overall quantities exported down 29.4 per cent.

Casein and caseinates were down $NZ45 million ($A35.36 million) or 43.3 per cent, while unwrought aluminium was down $NZ41 million ($A32.22 million) or 39.1 per cent with quantities 6.3 per cent lower.

Among the few commodity categories to show a rise in exports, petroleum and products other than crude oil rose $NZ22 million ($A17.29 million), while beverages, spirits and vinegar were up $NZ4 million ($A3.14 million) or 27.5 per cent, and wine was up $NZ4 million ($A3.14 million) or 3.5 per cent.

Contributions to the fall in imports included a $NZ251 million ($A197.24 million) or 48.5 per cent fall in crude oil last month from a year earlier, mainly due to lower prices.

Imports of consumption goods fell $NZ166 million ($A130.45 million) or 14.5 per cent, with some of the more notable decreases including pest and plant sprays, wine, and pleasure boats, SNZ said.

Capital goods imports were down $NZ164 million ($A128.88 million) or 20 per cent, with goods transport vehicles, tractors and earth moving machinery being leading contributors.

Passenger car imports edged up $NZ1 million ($A785,824) or 0.6 per cent, the first rise following 12 months of falls compared with the same month of the previous year.

Imports of petrol cars with engine sizes larger than 3000cc were up $NZ24 million ($A18.86 million), while petrol cars with a 1000-1300cc rating were down $NZ22 million ($A17.29 million).

For the three months to the end of October, exports fell $NZ2 billion ($A1.57 billion) or 19.2 per cent from a year earlier to $NZ8.5 billion ($A6.68 billion). Imports for the period fell 24.6 per cent to $NZ10.3 billion ($A8.09 billion).