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Exports to China slip as milk powder shipments soften, making Australia our top export market again for the first time in 17 months

Exports to China slip as milk powder shipments soften, making Australia our top export market again for the first time in 17 months

The March 2015 trade balance data out today from Statistics New Zealand came in with a trade surplus of NZ$432 mln, well above expectations of a $300 mln surplus.

That result excludes the re-export of a drilling platform to Singapore; including that major item the trade surplus was $631 million.

But despite this 'above expectations' performance, the surplus was well below the $904 mln surplus for the same month a year ago. It was also below the March 2013 result of $732 mln.

March and April are the high-water months when strong trade surpluses are usually recorded. This year is the lowest since 2012.

On an annual basis to March, the value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said.

On an annual basis, the trade balance slipped further to a -$2.4 bln deficit, the largest since mid-2009. 

For the past five months, exports to China and Australia have both fallen, compared with the same month in the previous year. Falls in exports to China were larger than the falls to Australia.

“This is the first time Australia has been our top export destination since the year ended November 2013,” international statistics manager Jason Attewell said.

Total goods exports fell -2%, down to $4.9 bln in March 2015 compared with March 2014. Exports to China fell -29% due mainly to a sharp fall-off for whole milk powder.

Imports of goods rose +4.1 percent to reach $4.3 bln in March 2015. Consumption goods (including clothing) led the rise, up +19%. Car imports were up +15%.

The New Zealand dollar had a minor reaction to the data, rising against most of our trading partners.

Trade balance, monthly

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Source: Statstics NZ
Source: Statstics NZ
Source: Statstics NZ
Source: Statstics NZ
Source: Statstics NZ

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1 Comments

[comment removed as it was irrelevant to this news item. Ed]

oops - meant to post in your 90 seconds at 9:00 am morning article - is that OK?

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