October trade deficit at $487m

The value of imports fell more quickly than the value of exports last month, but not enough to prevent a $487 million trade deficit.

Figures from Statistics New Zealand (SNZ) today showed exports in October were valued at $3 billion, down $859 million or 22.4 percent from a year earlier.

Imports fell $1.4b or 28.3 percent from October 2008 to $3.5b.

The October trade deficit amounted to 16.4 percent of the value of exports, compared to an average October deficit of 30 percent of exports for the previous five years.

For the year to October the annual trade deficit was $1.2b, amounting to 2.9 percent of exports, which was about a fifth of the average of 16.2 percent of exports for the preceding five October years.

The fall in exports in the month of October was widespread with whole milk powder exports down $126m or 35.1 percent, due to lower prices, while quantities exported rose 36.4 percent, SNZ said.

Cheese exports were down $92m from a year earlier, and anhydrous milk fat down $37m.

Crude oil exports fell $138m or 55.2 percent last month compared to October 2008, with overall quantities exported down 29.4 percent.

Casein and caseinates were down $45m or 43.3 percent, while unwrought aluminium was down $41m or 39.1 percent with quantities 6.3 percent lower.

Among the few commodity categories to show a rise in exports, petroleum and products other than crude oil rose $22m, while beverages, spirits and vinegar were up $4m or 27.5 percent, and wine was up $4m or 3.5 percent.

Contributions to the fall in imports included a $251m or 48.5 percent fall in crude oil last month from a year earlier, mainly due to lower prices.

Imports of consumption goods fell $166m or 14.5 percent, with some of the more notable decreases including pest and plant sprays, wine, and pleasure boats, SNZ said.

Capital goods imports were down $164m or 20 percent, with goods transport vehicles, tractors and earth moving machinery being leading contributors.

Passenger car imports edged up $1m or 0.6 percent, the first rise following 12 months of falls compared with the same month of the previous year.

Imports of petrol cars with engine sizes larger than 3000cc were up $24m, while petrol cars with a 1000-1300cc rating were down $22m.

For the three months to the end of October, exports fell $2b or 19.2 percent from a year earlier to $8.5b. Imports for the period fell 24.6 percent to $10.3b.

-NZPA