New Zealand posted a whopper $1.1 billion trade deficit in August -- the highest monthly deficit ever recorded, Statistics New Zealand (SNZ) figures out today show.
The result surpassed economists' expectations for a $834 million deficit, and pushed the annual trade deficit out to $5.82 billion from $3.8 billion ayear earlier.
The New Zealand dollar, already at a two-month low, fell on the news -- dropping quickly to US68.49c from US68.65c shortly before the announcement.
Soaring oil prices and a continued spend-up on imported consumer goods were behind the latest deficit.
The cost of imports rose 12.7 per cent to $3.47 billion in August, while export revenue fell 0.2 per cent to $2.36 billion.
Fuel products, particularly crude oil imports, played a big role, rising 32 per cent in the year to August. The August fuel bill was 29.2 higher than the same month a year earlier at $353 million.
Ships and boats and mechanical machinery and equipment were also big contributors to the higher import values.
The main contributors to the reduced exports value were fruit -- particularly kiwifruit -- and meat, particularly beef cuts.
Offsetting those falls were higher values for milk powder, butter and cheese.
Today's data compares with an average August trade deficit in the past 10 years of just $341 million.
It is the latest in a string of figures showing New Zealand is deeply in the red in its dealings with the outside world.
Last week SNZ figures showed the country's current account deficit -- which takes into account financial transactions as well as the flow of consumable goods -- swelled to $11.89 billion in the year to June, the worst deficit since the 1980s and a massive 8 per cent of GDP.
