Exported goods prices on the rise

Dairy and meat exports were the main contributors to a 3.8 percent rise in exported goods prices in the June 2010 quarter, Statistics New Zealand (SNZ) reported.

Dairy prices were up 6 percent and meat prices were up 4.5 percent. Forestry products, up 4.8 percent, and petroleum and petroleum product prices, up 4.8 percent also contributed to the rise.

With the increase in export prices, SNZ said the merchandise terms of trade rose 2.1 percent, meaning that 2.1 percent more imported goods could be funded by a fixed quantity of exported goods compared to the March 2010 quarter.

Prices for imported goods rose 1.7 percent in the latest quarter, influenced by higher petroleum and petroleum products, up 4.7 percent, and food and beverages, up 4.3 percent.

The terms of trade for services fell 0.7 percent, following a similar fall of 0.9 percent in the March 2010 quarter. The fall was mainly due to services export prices, down 1.6 percent, decreasing more than import prices, down 0.9 percent.

The overall export volumes were flat, up 0.3 percent.

Forestry products, meat and casein had significant increase seasonally adjusted export volumes. Though offsetting these increases were falls in volumes of fruit, petroleum and petroleum products, and dairy products.

Seasonally adjusted import volumes rose 1 percent in the June 2010 quarter, which is the fourth consecutive quarterly rise. Capital goods, which are assets used in industrial production, up 15.8 percent, and intermediate goods, which are used as inputs in producing other goods, up 5 percent, were the main contributors to the rise.

Consumption goods and motor spirit volumes fell in the June 2010 quarter.

- NZPA