KEY POINTS:
A drop in dairy shipments saw the trade gap widen in the December quarter as the country pulled in $1.19 of imports for every $1 of exports.
Adjusted for seasonal effects, exports fell 3.4 per cent compared with the September quarter, Statistics New Zealand said, while imports rose 0.5 per cent, mainly reflecting higher imports of plant and machinery.
Just over half the decline in exports was dairy products, down 9.5 per cent in value and 4.5 per cent in volume. But the decline was from record levels in the June and September quarters.
Meat exports fell 4 per cent in value, although the volume increased slightly, and fruit exports were down 15 per cent in value and volume.
On the other hand, imports of plant and machinery jumped 10 per cent after falling in the two previous quarters, to be 9 per cent ahead of the same period in 2005.
There were tentative signs of a slowdown in consumer demand. Imports of consumer goods were 2.2 per cent higher for the quarter, but 12 per cent higher for the year.
Within the quarter consumer goods imports tailed off in December compared with November and October.
Although that would be partly seasonal, the Reserve Bank would be relieved there were no clear signs of a significant acceleration in consumption spending, ANZ National Bank chief economist Cameron Bagrie said.
"But equally there are no clear signs consumption spending is experiencing the 'moderating trend' they [the Reserve Bank] require."
On an annual basis the trade gap was $6.2 billion up from $6 billion in the year ended November but down from $6.5 billion in the year ended October.
The wider current account measure, including goods, investment income and trade in services, is likely to show a small improvement from the 9.1 per cent of gross domestic product recorded in the September quarter, but Bagrie said it was expected to remain large.
