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New Zealand had a worse than expected trade deficit of $781 million in July as the cost of petroleum exports rose.
That was equivalent to 22.8 per cent of exports and compared to $808m in July 2007 which was 30.6 per cent of exports. The median forecast in a Reuters poll had been for a deficit of $526m last month.
For the July year the trade deficit was $4.44 billion, which was 10.9 per cent of exports, and compared to deficits of $6.3b for the year to July 2007 and $6.7b for the year ended July 2006, Statistics New Zealand (SNZ) said.
Exports in July were worth $3.42b, up $781m or 29.6 per cent on July 2007. Imports were up $754m or 21.9 per cent at $4.2b.
Last month was the 11th in a row in which the value of exports was higher than in the same month of the previous year, SNZ said.
The value of crude oil exports in July was $316m, up $266m from July 2007. Since last August - the first full month of production from the Tui oilfield - the average value of monthly crude oil exports had been $243m, SNZ said.
Milk powder exports rose $114m in July while butter exports were up $37m, due to a combination of increased price and quantity.
Frozen sheep meat exports were up $39m or 28.5 per cent, and frozen boneless beef cuts were up $38m or 37.9 per cent.
While the value of both frozen sheep meat and boneless frozen beef cuts rose strongly, quantities rose by just 8.2 per cent and 1.6 per cent, respectively, SNZ said.
Among imports, petroleum and products, which are imported in large irregular shipments, were up $292m last month compared to July 2007.
The next largest increase in imports was from mechanical machinery and equipment, which was up $82m spread over several areas including production equipment for use in gas fields, irrigation and spray equipment, and computers.
- NZPA
