KEY POINTS:
The trade gap widened last month as exports sagged and a warship weighed on the import bill.
Imports exceeded exports by $524 million, pushing the annual trade deficit to $6.23 billion, its worst since October last year.
But even without the arrival of HMNZS Canterbury, the monthly trade gap would have been $356 million, the largest since January.
Exports were 7.5 per cent lower than in June last year.
"This is not as bad as it looks, considering the 18 per cent rise in the exchange rate over the period," said BNZ economist Craig Ebert.
Imports were only 3.5 per cent higher than in June last year, despite the higher exchange rate.
In the June quarter, imports of capital plant and machinery recovered from a dip in the March quarter to be 17.3 per cent higher than a year ago.
"This implies a solid volume increase, considering the price of such capital goods would have been depressed by the rising exchange rate. As a sign of capacity being put in place ... this is good news."
In seasonally adjusted terms exports of manufactured goods proved resilient, with rises of 1.5 per cent for mechanical machinery and 2 per cent for electrical machinery, compared with March.
Compared to the June quarter last year manufactured exports were down 6.1 per cent, implying an offset from higher volumes or higher prices to the kiwi's appreciation over that period.
June trade
* Deficit: $524 million.
* Exports down 7.5 per cent from a year ago.
* Imports up 3.5 per cent.
