Seasonally adjusted exports fell more than imports in the June 2007 quarter, widening the seasonally adjusted trade deficit, Statistics New Zealand said today. Seasonally adjusted exports were down 3.8 percent and imports were down 1.7 percent, compared with the March 2007 quarter. The drop in exports was led by two commodity groups: meat and edible offal; and milk powder, butter and cheese. Together these two commodities accounted for 45 percent of the seasonally adjusted decrease in exports. The decline in seasonally adjusted imports follows ten consecutive quarterly increases.
Actual values for exports of merchandise goods for the month of June 2007 were down 7.5 percent on June 2006. Combined, the meat and edible offal group, and the milk powder, butter and cheese group accounted for almost two thirds of the decrease. However, imports were up 3.5 percent on June 2006 to $3,275 million, the highest value recorded for a June month. The ships, boats and floating structures group was the largest contributor to the imports increase, primarily due to the importation of the HMNZS Canterbury.
An increasing exchange rate generally has a downward influence on New Zealand export values: the Reserve Bank's Trade Weighted Index shows the New Zealand dollar rose 3.2 percent for the June 2007 month (from May 2007), and was 18.1 percent higher than 12 months earlier.