New Zealand Records NZ$269 Million Trade Surplus In January

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New Zealand had its best January trade surplus as a percentage of exports in two decades, figures released by the government show. The surplus came about due to a faster rate of decline in imports relative to exports.

Statistics New Zealand said a trade surplus of NZ$269 million was recorded in January or 8.5% of the value of exports, compared to the NZ$32 million deficit in the previous month. Economists were looking for a deficit of NZ$100 million.

This is the first time New Zealand has recorded a trade surplus since May last year and the highest January trade surplus in percentage terms since 1989. Exports were valued at NZ$3.2 billion, down 0.6% from the same month of the previous year, slowing from the 11.1% fall in the preceding month.

Imports, on the other hand, amounted to NZ$2.9 billion in January, down 11.9% from a year ago, after the 17.6% fall in the prior month.

Exports recorded mixed results, with casein & caseinates, cereals, flour, & starch, and meat & edible offal recording large declines. Exports of crude oil & milk powder, butter, and cheese recorded large rises.

Electrical machinery & equipment and mechanical machinery & equipment were the most significant contributors to the decline in imports. Petroleum & product imports recorded the largest increase, led by a rise in crude oil imports.

By country of destination, exports to the U.S. plummeted 48.3% led by lower casein & caseinates exports. Exports to Algeria, South Africa and Japan were also down, while the largest increase in exports was to Australia, up 15.1%.

On the import side, the most significant decrease in imports were from Japan, down 43.4%. Imports from Singapore and Denmark also slumped, while the largest increase in imports during January was from South Korea.

Exports for the three months ended January period amounted to NZ$9.6 billion, down 9.9% from the corresponding period of the prior year. For the same period, imports were worth NZ$9.7 billion or down 17.5%.

Meanwhile, the total number of dwelling starts authorized in New Zealand fell a seasonally adjusted 2.8% month-on-month in January, Statistics New Zealand said. This follows a 3.5% fall in the previous month.

Excluding the "volatile" apartments segment, the seasonally adjusted number of new dwellings authorized rose 0.7%, after falling 3.9% in December.

A total of 1,000 new dwellings and 42 new apartments were authorized in January.

The regions with the largest increases in dwelling consents were Canterbury, Auckland and Northland.

On the other hand, dwelling consents in Marlborough, Tasman, Otago, Wellington, Gisborne, and West Coast decreased.

New Zealand had its best January trade surplus as a percentage of exports in two decades, figures released by the government show. The surplus came about due to a faster rate of decline in imports relative to exports. (Market News Provided by RTTNews)