Trade slips into the red

New Zealand's merchandise trade balance slumped into the red in July, Statistics New Zealand said yesterday.

The preliminary figures, based mainly on imports, showed the trade balance was $226 million in deficit, compared with analysts' forecasts of a much smaller $57 million deficit.

Exports in July were estimated at $2.57 billion and imports at $2.8 billion.

For the year to July, Statistics NZ estimated the trade surplus at $257 million, against analysts' expectations of a $430 million figure. More detailed statistics for merchandise exports will appear on September 5.

The agency said imports fell by 1.3 per cent in the year ended July, compared with the previous year.

The value of exports is now declining at a faster rate than imports, leading to a trade deficit, rather than the surpluses recorded earlier in the year, Statistics NZ said.

The monthly trade deficit was estimated to be 8.8 per cent of exports in July - only the third time in a decade it has exceeded 8 per cent in that month.

Excluding items valued at $100 million or more - such as aircraft and ships - the annual decrease in merchandise imports was 0.2 per cent.

- NZPA