KEY POINTS:
New Zealand had a $750 million trade deficit in August, even as the value of exports rose 34.1 per cent from a year earlier to $3.57 billion.
Releasing the data today, Statistics New Zealand (SNZ) said imports were up 19.6 per cent to $4.32b over the same period.
The August trade deficit was lower than forecast in a Reuters poll of economists, which had a median figure of $912m for the deficit.
For the August year the trade deficit was $4.28b. As a percentage of exports - at 10.3 per cent - that was the smallest annualised trade deficit since August 2003.
SNZ said a $210m (77.7 per cent) rise in milk powder, butter and cheese led the rise in exports, closely followed by a $190m rise in crude oil.
Meat and edible offal exports were up $121m in August from a year earlier, including a $49m rise in frozen beef cuts.
The export figures also included four vessels with a total value of $75m.
The imports increase was led by a jump of $329m in petroleum and products, with crude oil the main contributor.
Transport equipment imports were up $150m, due to one-off imports of large aircraft with a value of $160m, SNZ said.
Passenger car imports fell $27m, or 9.2 per cent, mainly due to a 29.6 per cent reduction in vehicles with engines greater than 1500cc.
Of all passenger cars imported last month, 74.1 per cent had engines larger than 1500cc, compared to 84.2 per cent in August 2007.
The $750m monthly trade deficit, which equated to 21 per cent of exports, was the smallest August deficit since 2004.
While the export trend had continued to grow in recent months, it had eased compared with the period of strong growth in the second half of 2007, SNZ said.
The import trend had risen strongly since June 2007, coinciding with the significant rise in fuel prices.
For the three months to August exports were up 31.6 per cent from the equivalent period last year to $10.6b, while imports were up 19.8 per cent to $12.4b.
For the three months, crude oil exports were up $721m, while milk powder, butter and cheese exports rose $630m, and meat and edible offal were up $326m.
The largest decrease was a $20m drop in aluminium and aluminium articles.
Among imports for the three months, petroleum and products were up $996m, or 67.8 per cent, with aircraft and parts up $229m.
- NZPA
