New Zealand trade balance widened a little more than expected in August

New Zealand recorded a trade deficit of $1b in August, resulting in the annual trade deficit rising to $3b. While the deficit was a bit wider than markets were expecting, most of the variation relates to imports of capital equipment which can be volatile on month-to-month basis (in this case, importation of an aircraft threw the monthly figures around). Consequently, today's result does not imply any significant risk for the trade balance going forward. 

The exports picking up by 4% (adjusted for seasonal distortions). This was led by a pick-up in the value of meat exports, with gains in both export volumes and prices. Fruit exports also increased. There was a modest pull back in dairy exports in August following last month's sharp increase. 

August also saw a 2.2% increase in imports, despite a pullback in petroleum imports.