Export index at record high

New Zealand's commodity export price index rose to a record in November, led by hides, lumber and meat, ANZ National Bank said.

The index increased 4.5 per cent from October, when it gained 3.5 per cent, ANZ National said in a report. After adjusting for gains in the currency, prices rose 1.4 per cent.

Prices have gained 24 per cent from a year earlier, adding to signs that exports, which make up 30 per cent of New Zealand's economy, will help stoke a recovery next year.

It takes time for higher farm incomes to flow through into spending in the cities, New Zealand Institute of Economic Research principal economist Shamubeel Eaqub said.

"We are more optimistic about the outlook from mid-2011," he said yesterday.

"We have strong commodity prices. They will flow through later next year."

Adjusting for the stronger dollar, prices rose 16 per cent since November last year, yesterday's report showed. Ten of 15 commodities tracked by ANZ National showed gains from October, with three unchanged and two declines, the bank said.

- Bloomberg