NZ terms of trade fall to three-year low
Mon, 03 Dec 2012 12:40p.m.
New Zealand's terms of trade fell to a three-year low in the September quarter as the country's strong currency ate into returns from an increasing volume of dairy exports.
The terms of trade, which measures how much imports can be bought with a fixed quantity of exports, fell 3.2 percent in the three months ended September 30, according to Statistics New Zealand.
That's more than the 1.8 percent forecast in a Reuters survey of economists.
Export prices sank 6.3 percent, ahead of the 3.6 percent expected, while import prices declined 3.3 percent versus an anticipated two per cent fall.
The falling prices came even as export volumes beat expectations, rising 9.7 percent in the quarter, while import volumes advanced 0.7 percent.
Dairy, which accounts for about a quarter of New Zealand's exports, was the biggest contributor to the falling export prices and rising volumes, with volumes surging 32 percent in the quarter and prices sinking 13 percent.
"Dairy export volumes are at record levels, after adjusting for seasonal effects," said Chris Pike of Statistics NZ.
"Dairy values remain at high levels, even though export prices have fallen for five consecutive quarters."
The New Zealand dollar held back export prices, rising two percent on a trade-weighted basis in the quarter, Statistics NZ said.
Post a Comment
Before commenting, please take the time to read our moderation guide
(Won't be published)
12/12/2012 11:13:57 a.m.
That 3 year low....isn't it another sign National's policies are failing and it's time to put on a life jacket,start rowing for shore and hope we get there. If and when we eventually do get back to some type of FUNCTIONAL govt, things may get better.Otherwise, Kiwis will have to resort to putting the headlights on full beam in case they miss the brighter future that lies ahead.(What a tragic joke this govt is turning out to be.)
3/12/2012 3:10:24 p.m.
Can anybody argue that we are not a leaking lifeboat in a sea of milk.
The Whakatane Beacon has joined the Ashburton Guardian and t...
The Govt says it's hypocritical of the Greens to criticise t...
The International Monetary Fund has called on Britain to do ...
Nick Smith says the deal with Bathurst will see native speci...
A huge plunge in Japans' share market has produced big falls...
Copyright © 2013 MediaWorks TV. All Rights Reserved.