The underlying trade balance continued to improve last month but only because imports shrank faster than exports.
It was a deficit of $471 million, implying $1.13 of imports for every $1 of exports.
But the import side was inflated by the arrival of $571 million worth of aircraft for the
new Jetstar fleet. Excluding one-offs the trade balance would have been a surplus of $154 million - the first June surplus since 2002.
Excluding the aircraft, imports were worth $3 billion, 20 per cent lower than in June last year, while exports at $3.2 billion were down 11 per cent.
For the June quarter, exports fell 5.4 per cent, seasonally adjusted, from their level in March which in turn was 5 per cent down on December.
Dairy exports recorded the largest fall as weaker prices swamped a jump in the volumes of dairy products shipped - up 22 per cent on March and 38 per cent on the average for the four previous June quarters.
Leading the gains was a 64 per cent boost in oil exports as shipments from the Maari field began but New Zealand remained a net oil importer to the tune of $900 million in the June quarter.
Imports excluding the aircraft fell 8.7 per cent from March levels which in turn were 13.7 per cent lower than in the December 2008 quarter.
Imports of plant and machinery were down 23 per cent on the June quarter last year, while imports of cars were 42 per cent lower.
But imports of consumer goods were 3 per cent higher than a year ago. That was puzzling, said Bank of New Zealand economist Craig Ebert, in light of the big retreat in consumer spending over the past six to 12 months.
"But at least there are signs that the worst of the declines are probably behind us and that growth might even reappear in consumer spending before the year is out."
He expects the improving trade balance to help cut the current account deficit to 6.8 per cent of GDP for the year ended June, from a "gaping" 8.5 per cent in the year to March.
"It's the sort of good news we can probably do without, if it encourages the market to bid the New Zealand dollar ever higher," Ebert said.
