Biggest export price slump since 1957

Export prices have shown the largest drop since the 1957 slump which led to the “Black Budget” of 1958.

Export prices fell 8,2% for the March quarter, Statistics New Zealand announced this morning.

The main cause was falling dairy prices, which plummeted 20.5% - the largest ever fall since the survey began in 1950.

On an annual basis the dairy fall is 10%, compared to a rise of 63.3% the previous year.

The other main cause was a drop of 28% in petroleum prices.

Import prices dropped 5.4% - again, this is a commodities story, with the fall of 35.8% in petroleum prices being the main cause.

On a volume basis, exports rose 2% and imports fell 9.8%. On the import front though, the biggest slump was in capital goods, which plummeted 30.1%, reflecting businesses cutting back on investing in plant and machinery and other productivity -enhancing goods.

This is the third consecutive quarterly fall in capital goods.

Offsetting that though was a rise in the imports of transport equipment and other related machinery. Mechanical machinery import prices rose 8.2% over the quarter, with computers, excavators and machinery parts being the principle drivers.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7313 -0.0002 -0.03%
AUD 0.9588 -0.0022 -0.23%
EUR 0.6480 -0.0015 -0.23%
GBP 0.5532 0.0003 0.05%
HKD 5.6684 -0.0025 -0.04%
JPY 73.3750 -0.1880 -0.26%

Commods

Commodity Price Change Time
Gold Index 1326.1 -11.740 2016-08-24T00:
Oil Brent 49.4 -0.270 2016-08-24T00:
Oil Nymex 46.8 -1.380 2016-08-24T00:
Silver Index 18.6 -0.360 2016-08-24T00:

Indices

Symbol Open High Last %
NZX 50 7410.3 7437.8 7410.3 0.23%
NASDAQ 5254.4 5263.0 5260.1 -0.81%
DAX 10576.6 10576.6 10623.0 -1.09%
DJI 18537.5 18539.2 18547.3 -0.35%
FTSE 6835.8 6836.2 6835.8 -0.48%
HKSE 22814.4 22898.1 22820.8 0.03%
NI225 16580.2 16628.8 16597.3 -0.25%
ASX 5561.7 5562.4 5561.7 -0.36%