NZ: Modest trade surplus in May – Westpac

Michael Gordon, analyst at Westpac, points out that the New Zealand recorded a $264m trade surplus in May.

Key Quotes

“The result was close to forecasts, although the values of both exports and imports were higher than expected, which may reflect the impact of a weaker New Zealand dollar over the month.”

“May is usually near the seasonal peak for the trade balance. In seasonally adjusted terms, the country recorded a $249m deficit in May, an improvement on the $384m deficit in April.”

“Seasonally adjusted exports rose by 4.2%, led by gains in dairy and forestry.”

“Seasonally adjusted imports rose by 1.4%.”

“The annual deficit improved slightly to just under $5.5bn. We expect a modest further improvement in the coming months, as the rise in dairy prices earlier this year continues to flow through into the export figures.”