July trade deficit expands

New Zealand's trade deficit for July has widened by $20 million to $246 million.

Statistics New Zealand said yesterday that merchandise exports for the month totalled $2.55 billion, slightly lower than forecasts.

Merchandise imports were $2.8 billion.

"This is the largest deficit for a July month since 1997 when the frigate Te Kaha was imported," Statistics NZ said.

Deficits have occurred in July for the past 11 years.

"Monthly trend figures indicate that exports and imports have declined in recent months, with exports declining at a faster rate than imports."

Contributing to the deficit were lower prices for some export commodities such as milk powder, casein, butter and cheese. Prices for those commodities were below average prices of two years ago.

However, according to the ANZ Commodity Price Index released on Tuesday, world prices for New Zealand's major exports steadied in August as the year-long slide in dairy prices halted.

The export value of fresh kiwifruit rose by $99 million to $420 million for July, compared with July last year.

For the year ended July, the value of merchandise exports was $32.12 billion, down 1 per cent on the previous year.

The trade balance for the year to July was a surplus of $247 million, down $10 million on figures released last month.

- NZPA