2018.12.1918:47:00UTC+00New Zealand Trade Deficit NZ$861 Million In November

New Zealand posted a merchandise trade deficit of NZ$861 million in November, Statistics New Zealand said on Thursday - representing 17 percent of exports.

That exceeded expectations for a shortfall of NZ$880 million following the NZ$1.295 billion deficit in October.

Exports jumped 7.1 percent to NZ$4.94 billion, missing forecasts for NZ$4.98 billion but up from NZ$4.86 billion in the previous month.

The leading contributor was exports of aluminum and aluminum articles, up NZ$59 million (142 percent). This movement was partly due to unusually low values and quantities of aluminum exports in November 2017. This month's value (NZ$101 million) was close to the average monthly value over the last 24 months (NZ$99 million).

Meat and edible offal rose NZ$56 million (11 percent) to NZ$553 million. Beef rose NZ$51 million (28 percent) in value, and 30 percent in quantity. The largest rise in beef exports was to China, up NZ$32 million.

Milk powder, butter, and cheese (our largest export commodity) rose NZ$30 million (2.1 percent) to NZ$1.5 billion. Milk powder rose NZ$96 million (12 percent) in value, and 17 percent in quantity. The average unit value fell 3.9 percent.

Butter fell NZ$101 million (42 percent) in value, and 33 percent in quantity. The average unit value fell 14 percent.

Preparations of milk, cereals, flour, and starch rose NZ$36 million (25 percent). This group includes infant formula. Fruit rose NZ$32 million (60 percent) to NZ$86 million, led by green kiwifruit, up NZ$34 million (167 percent) in value, and 162 percent in quantity.

Imports eased 0.6 percent to NZ$5.80 billion, matching expectations and down from NZ$6.13 billion a month earlier.

The leading falls were: vehicles, parts, and accessories, down NZ$188 million (23 percent) to NZ$647 million; aircraft and parts, down NZ$143 million (48 percent) to NZ$153 million; petroleum and products, down NZ$59 million (11 percent) to NZ$504 million; crude oil fell NZ$115 million (34 percent) - this was quantity-led; petroleum and products other than crude (such as petrol and diesel) rose NZ$50 million (24 percent); and mechanical machinery and equipment, down NZ$54 million (6.5 percent) to NZ$782 million.

These falls were partly offset by rises across a range of commodities, led by: fertilizers, up NZ$53 million (89 percent); and food industry residues, wastes, and fodder (e.g. soya bean oil cake and palm oil cake), up NZ$45 million (52 percent).

Annual goods exports were valued at NZ$57.5 billion in November 2018, up NZ$5.0 billion from the year ended November 2017. Annual goods imports were valued at NZ$63.0 billion in November 2018, up NZ$7.0 billion from the year ended November 2017.

The annual trade deficit was NZ$5.4 billion in November 2018, up from NZ$3.5 billion in November 2017.