December trade deficit less than expected

New Zealand's estimated December 2004 trade deficit was today reported at $493 million -- 10 percent less than anticipated thanks to surprisingly robust preliminary export figures.

Economists polled by Reuters had expected a deficit of $555m for the month.

However, December Overseas Merchandise Trade figures released today by Statistics New Zealand (SNZ) showed that while the provisional value of merchandise imports at $3.05 billion was in line with forecasts, the estimated value of exports for the month was $2.56b against expectations of $2.48b. Revised export figures will be released on February 9.

The trade deficit for the 12 months to December was estimated at $4.17b with the provisional value of imports for the year being $34.91bn.

SNZ said in commentary the value of merchandise imports for the December month was up 8.6 percent on the same month last year.

The rise was on more imports of petroleum, crude oil, mechanical machinery, plastics, tractors and trucks and iron and steel products.

The value of imports from Australia, China, United Arab Emirates and Yemen rose in December compared with the same month in 2003, while the value of imports from the United States were lower.

On a quarterly basis, SNZ said the seasonally adjusted value of imports was maintaining a high level following large increases in the first half of 2004.

The value of imports rose 0.2 percent over the period.

A rise in the value of imports of intermediate goods such as crude oil, partly refined petroleum and diesel, and also consumption goods such as food and beverages was partly offset by a decrease in the value of imported machinery and plant over the quarter.

- NZPA