Record June trade surplus on higher dairy, forestry exports

Photo / Kenny Rodger

New Zealand recorded a trade surplus of $276 million for the month of June, equivalent to 7.3 per cent of exports.

Publishing the data today, Statistics New Zealand said the largest increases in exports last month, compared to June 2009, were in milk powder, butter, cheese, and logs, wood and wood articles.

It was the sixth consecutive monthly trade surplus, and the first June month surplus since 2002.

ASB Bank economist Jane Turner said the ongoing trade surpluses and the surprising strength in export receipts were "a testament to the export-led recovery taking place."

"While stronger dairy prices was a key driver for the June quarter's strength, it was encouraging to see the strength in seasonally-adjusted exports was relatively broad based with dairy, meat, forestry and manufacturing all performing well over the quarter," said Turner.

"Economic growth over 2010 will be supported by the recovery in export incomes, with the Reserve Bank this morning pointing to strong prospects for forestry and manufacturing in particular."

The value of imports was higher than expected at $3.5 billion for the month, compared to the median estimate in a Reuters poll of $3.37b. Compared to a year earlier the value of imports was down 1.6 per cent.

Exports were worth $3.8b in June, slightly better than expected, and 17 per cent higher than a year earlier.

The trade balance for the year to June was a surplus of $639 million, or 1.6 per cent of exports. That compares to an average deficit of 15 per cent of exports over the preceding five June years.

-NZPA