Updated October trade figures show $552m deficit

Trade figures updated to include more complete export data left New Zealand's October trade deficit little changed at $552 million, Statistics New Zealand said today.

The deficit had initally been reported last month at $554m -- better than economists' forecasts of nearly $800m.

The deficit for the October year was $3.91 billion, down from $4.08 billion in the September year, but up from the $3.23 billion October 2003 deficit.

Exports in October totalled $2.49 billion against $2.29 billion in October 2003 while imports rose to $3.04 billion from $3.01 billion.

October year exports rose to $30.25 billion from $28.55 billion a year earlier, while imports were up to $34.16 billion from $31.79 billion.

Exports of dairy products fell $60m (9.8 per cent) from September. Dairy produce is the highest valued commodity exported, accounting for approximately one sixth of the annual exports value.

The trend for the monthly exports value has risen 10.7 per cent since August 2003, but has eased over recent months.

During the same period, the exchange rate on a trade-weighted basis appreciated 9.4 per cent, reaching its highest level since April 1997 in October 2004.

Exchange rate appreciation generally has a downward influence on export values.

Milk powder, butter and cheese; and casein and caseinates were the two main commodity groups that recorded lower export values during October 2004.

The value of exported milk powder was 20.1 per cent lower than in October 2003. The quantity of milk powder exported was also down, 28.5 per cent lower than in October 2003. The export value of cheddar cheese was 28.8 per cent lower than in October 2003, and the quantity exported was down 42.8 per cent.

These lower values were partly offset by a higher export value and quantity for natural milk constituents.

Belgium, Mexico, the Netherlands and Nigeria were the four main export destinations that recorded lower export values for dairy products during October, compared with a year earlier.

Partly offsetting these lower export values were higher values for dairy exports to the United States of America, the Philippines, Saudi Arabia and Oman.

- NZPA