New Zealand exports surge year-on-year in July on rebound in dairy export prices

New Zealand’s exports boosted in July on a year-on-year basis, owing to a rebound in dairy export prices, stated Statistics New Zealand. This has resulted in a rare July trade surplus of NZD 85 million in 2017. Usually July months are deficits.

"This month’s surplus compares with a $351 million deficit in July 2016, in part reflecting a large aircraft import back then”, said overseas trade manager Tehseen Islam.

On a year-on-year basis, exports grew 17 percent or NZD 688 million. The rise in exports was driven by higher values throughout a variety of commodities, particularly milk powder, butter and cheese. The rise in dairy was the biggest for any month since March 2014. The value of whole milk powder per tonne was one-third higher than one year ago, while the quantity rose 12 percent. International dairy product auction rose sharply in the second half of 2016.

Meanwhile, imports rose 5.4 percent in July 2017, driven by vehicles, parts and accessories. Aircraft and parts dropped due to a large import in July 2016.

Annual goods exports for the year ended July 2017 valued at NZD 50.5 billion, the first time they have surpassed NZD 50 billion since December 2014. Annual exports have grown since the most-recent low point of NZD 48.3 billion in February 2017. Annual imports rose NZD 1.7 billion for the July 2017 year from the July 2016 year. Vehicles, parts and accessories and petroleum and products mainly drove the rise in imports. Annual import values have been over NZD 50 billion since September 2014. The annual deficit was NZD 3.2 billion, down from NZD 3.6 billion for the June 2017 year.

At 23:00 GMT the FxWirePro's Hourly Strength Index of New Zealand Dollar was neutral at -35.8605 the FxWirePro's Hourly Strength Index of US Dollar was neutral at -3.04035. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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