Exports take a fall

By BRIAN FALLOW

Export income for last November was 3 per cent lower than a year before as weaker commodity prices bit into receipts. It is a stark contrast with the double-digit annual growth in export income New Zealand recorded throughout 2000 until last August.

Statistics NZ said wood pulp receipts were down 60 per cent on November 2000, aluminium down 17 per cent, wool down 35 per cent and hides down 21 per cent.

Dairy exports were 4 per cent up on November 2000, but that was a slowdown from the 21 per cent annual growth recorded in October.

Deutsche Bank economist Darren Gibbs said: "In part this reflects the substantial weakening in dairy prices over recent months."

ASB Bank chief economist Anthony Byett thought export numbers would remain weak in coming months but not as weak as in November.

"The big unknown is what the effect of the weak dollar will be on export volumes, as the world economy recovers."

The weak exchange rate had not yielded a major increase in export volumes - the obvious explanation being that it had coincided with weak world growth. If so, by the second half of the year export volumes might be stronger than expected, benefiting from a rebound in the United States and more modest recovery elsewhere.