November trade balance a $380m deficit
While import and exports values both rose in November 2011 from a year earlier, imports dominated leading to a widening of the trade balance to a deficit of $308 million for the month.
The trade balance widened in November as export growth failed to keep pace with the country’s increased imports.
Statistics NZ data released today shows while import and exports values both rose in November 2011 from a year earlier, imports dominated leading to a widening of the trade balance to a deficit of $308 million for the month.
“Crude oil and fertilisers were key contributors to the 10% rise in imports,” overseas trade manager Stuart Jones says. “The value of imports increased $382 million to $4.2 billion.”
Exports increased $251 million (6.8%) to $3.9 billion, mainly due to an increase in milk powder, butter, and cheese exports.
The trade balance for November 2011 was a deficit of $308 million (7.9% of exports). Statistics NZ says the November trade balance is normally a deficit, with an average deficit of 16% of exports for the previous five November months.
For the year to November 30, 2011, the trade balance was a surplus of $555 million.
The trend for exports remains at record levels, 27% higher than the most recent low point in October 2009. The trend for imports is up 24 percent since its most recent low point in September 2009, but is still 7.5% below its peak in September 2008.
Seasonally adjusted exports decreased 4.6% ($189 million) in November 2011 compared with October 2011. Seasonally adjusted imports showed little change, up 0.2% ($8.7 million) over the same period.
JP Morgan analyst Ben Jarman says his expectation was that "the slowing in Asian growth witnessed through 4Q would drag kiwi exports lower, well and truly overcoming the seasonal tendency for export revenues to improve into year-end"
"However," he says in a commentary, " while key export groups remain volatile month to month, overall the last couple of trade reports generally have beaten expectations. It seems that the trend in exports is steadier than earlier appreciated, and may compensate for some of the weakness in private consumption we expect in 2012."
NBR staff
Mon, 09 Jan 2012
Mon, 09 Jan 2012
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November trade balance a $380m deficit
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