March trade surplus better than expected

A rise in exports of milk powder, butter and cheese from a year earlier helped push New Zealand's trade surplus to a higher than expected $567 million for the month of March.

Statistics New Zealand said the March balance was equal to 14 per cent of exports, the largest trade surplus for a March month since 2002.

The value of exports for the month was 0.1 per cent, or just $3m, higher than March 2009 at $4.1 billion. Imports were down 3.5 per cent or $126m to $3.5b.

The median prediction in a Reuters poll of economists had been for a March surplus of $380m, exports of $3.74b and imports of $3.31b.

For the year to March the annual trade balance was a deficit of $194m, amounting to 0.5 per cent of exports.

Exports for the year fell 8.8 per cent or $3.8b to $39.5b, with the largest fall recorded in the milk powder, butter and cheese category.

Imports for the year fell 17.3 per cent or $8.3b from the previous March year to $39.7b. That was the first decrease in a year ended March since 1997, and the largest percentage fall for a March year since 1975.

For the March quarter, the trade surplus was a seasonally adjusted $233m or 2.2 per cent of exports. Exports were up 10.4 per cent from the December quarter to $10.4b, while imports rose 6.8 per cent to $10.2b.

- NZPA