New Zealand January Trade Surplus NZ$56 Million

(RTTNews) - New Zealand posted a merchandise trade surplus of NZ$56 million in January, Statistics New Zealand said on Thursday - representing 1.5 percent of exports.

That topped expectations for a deficit of NZ$158 million following the downwardly revised NZ$195 million shortfall in December (originally -NZ$159 million).

Exports were worth NZ$3.70 billion - shy of expectations for NZ$3.73 billion and down 9.1 percent on year from the downwardly revised NZ$4.40 billion in the previous month (originally NZ$4.42 billion).

Milk powder, butter, and cheese exports drove the fall, down 30 percent, led by lower prices. The quantity of dairy products exported rose 2.9 percent, led by cheese and butter, however the quantity of milk powder exported fell 3.1 percent.

Exports to China fell NZ$635 million (52 percent) to NZ$597 million.

"Lower milk powder prices in the last five months, compared with the same months a year earlier, are the main reason exports have been falling," international statistics manager Jason Attewell said. "Although export values fell, we saw record quantities of dairy and meat exports for a January month."

A 20 percent rise in meat exports partly offset the fall in monthly exports, led by frozen beef, up 53 percent.

Imports shed 3.8 percent to NZ$3.64 billion versus forecasts for NZ$3.94 billion following the upwardly revised NZ$4.60 billion a month earlier (originally NZ$4.58 billion).

The fall was led by intermediate goods (such as crude oil and automotive diesel), down 9.8 percent.

On a seasonally adjusted monthly basis, exports gained 2.7 percent and imports dropped 8.5 percent.

Year to date, New Zealand has a trade deficit of 1.409 billion - exceeding expectations for a shortfall of NZ$1.6 billion after showing a NZ$1.180 billion annual deficit in December.