Trade surplus widens as tepid economy restrains imports

New Zealand's annual traded surplus widened last month as the nation shipped more dairy products, logs and crude oil while a tepid domestic economy constrained imports.

The trade surplus was $921 million in the 12 months ended September 30, from a revised surplus of $892 million in the year through August, according to Statistics New Zealand.

The monthly traded deficit was $532 million, up from a gap of $413 million in August.

Exports in September rose 12 per cent to $3.16 billion, for an annual increase of 0.5 per cent to $41.8 billion. Monthly imports rose 9.1 per cent to $3.69 billion for an annual decline of 5.5 per cent to $40.88 billion.

Reserve Bank Governor Alan Bollard yesterday pointed to weak consumer spending and a soft property market as households pay down debt. Companies including courier firm Freightways have been telling shareholders that the domestic economy is making only a gradual recovery, which may constrain demand for imported goods.

Imports of mechanical machinery fell 10 per cent in the latest year, electrical machinery fell about 17 per cent and textiles declined 3.1 per cent.

Exports of milk powder climbed 7.5 per cent, logs and wood rose 16 per cent and crude oil shipments gained 17 per cent. Exports to China showed the most growth, rising 44 per cent in the month and 22 per cent in the year to cement that country's place as the No. 2 market for New Zealand goods.

Exports to Australia, the biggest market, rose 1.1 per cent in the month for an annual increase of 7 per cent.