Trade surplus for April well below market expectations ($157mln vs consensus $515mln )

Data just released by Statistics NZ shows a monthly trade surplus of just $157 mln. This was a significant miss on market consensus forecasts of $515 mln.

April's surplus of 4% of exports compares with an average surplus of 10% over the previous five April months. Statistics NZ note April months have been in surplus since 2009

Following the announcement the NZ$ has sold off a little but is holding at 0.8100 against the US$.

Statistics NZ reveal that we exported more goods to Australia than to China in the month of April, but for the last year (April 2012 to April 2013) exports to China rose and Australia fell. Total exports to China rose 26% or $134 mln.

Exports for the month rose 2.2% led by Meat and edible offal up 11%. Also sharp rises in frozen lamb cuts (+18%) and frozen boneless beef (+8.8%) were recorded. These rises in export meats build on previous increases seen in the March 2013 data.

Other key changes in the commodity group were petroleum and products up 46% and preparations of cereals, flour and starch up 39%. These significant increases were attributed to increases in crude oil and partly refined petroleum and instant food preparations respectively.

In April 2013, imported goods were valued at $3.8 billion, up $263 million (7.4 percent) from April 2012. Intermediate goods show the largest increase. For the three main economic categories, the value of intermediate goods rose while capital goods and consumption goods fell.

Leading intermediate goods higher were crude oil and automotive diesel. The fall in capital goods was as a result of a decrease in machinery and plant, and specifically steam turbines. Durable and non-durable consumer goods such as furniture and clothing led this category lower.

After allowing for seasonal adjustments the trade balance was a deficit of $262 million, equivalent to 0.6% of exports. This follows a surplus of $164 million in March.