KEY POINTS:
The country pulled in $1.34 worth of imports for every $1 of exports last month, but the trade figures show signs of improvement.
Imports exceeded exports by $833 million, Statistics New Zealand reported. That was worse than the $650 million financial markets were expecting, but the difference is explained by a "lumpy" import of $220 million worth of aircraft.
There was a similar aircraft import in January last year. Excluding both, imports last month were 7.2 per cent higher than a year ago, while exports were 12.5 per cent higher.
That continues the trend of the past year of exports growing faster than imports on an annual basis, which has seen the trade deficit narrow to $6 billion from $7.3 billion a year ago.
Goldman Sachs JB Were economist Shamubeel Eaqub said the ANZ commodity price index, which is a good proxy for export prices overall, had risen 12 per cent in the year ended January.
Dairy products made up more than a third of last month's increase in exports (compared with a year ago).
On the inbound side, imports of consumer goods were 13.5 per cent higher than in January last year, but imports of cars were 12.6 per cent lower. Imports of plants and machinery were 14.7 per cent higher.
That would provide some encouragement to the Reserve Bank, said ANZ National Bank chief economist Cameron Bagrie.
Capacity constraints in the economy remained significant, he said, and any further investment might help to alleviate them and the upward pressure they place on medium-term inflation.
