Information in this release is for the month of July 2009 compared with July 2008 unless otherwise stated.
Exports
The value of merchandise exports for the month of July 2009 was $3.2 billion, down $252 million (7.3 percent) from July 2008.
After rising steadily from mid 2007, the trend for total merchandise exports has been declining and is down 7.4 percent since its peak in October 2008. The strength in the export trend up until October 2008 was mainly a result of strong dairy prices and a substantial increase in crude oil exports.
Crude oil showed the largest decrease in July 2009, down $119 million (37.8 percent). This fall was almost entirely due to lower prices, with quantities similar to July 2008.
Meat and edible offal was the next largest fall, down $50 million (11.5 percent) as a result of lower quantities overall. This is the second consecutive monthly fall (compared with the same month of the previous year) and follows 14 consecutive monthly rises. The fall in July 2009 was led by frozen beef cuts and venison.
Iron and steel and articles (down $35 million or 34.4 percent) and aluminium and aluminium articles (down $28 million or 27.3 percent) were the next largest falls.
Milk powder, butter and cheese fell $12 million (2.0 percent) compared with July 2008, despite quantities being 54.2 percent higher.
The largest increase for exports was preparations of cereals, flour and starch, up $20 million (35.7 percent) including a $10 million (120 percent) increase in dairy-based infant formula. Wine was the next largest increase up $19 million (28.8 percent) led by still white wine.
By country of destination, the largest falls for exports were to Australia, down $141 million (16.1 percent) followed by the United States of America, down $122 million (29.0 percent). These falls were mainly due to crude oil, with crude oil exports to Australia down $113 million and to the United States down $102 million, with the US importing a single shipment of crude oil in July 2008 and nothing since.
The largest increase in exports by country of destination was to the People's Republic of China up $103 million (51.6 percent). The major contributors to this increase were crude oil exports to China, (which commenced in July 2009) at $36 million; whole milk powder, up $32 million; and pinus radiata logs, up $29 million.
Imports
In July 2009, the value of merchandise imports was $3.3 billion. This value was $886 million (20.9 percent) lower compared with July 2008. In percentage terms, the decrease is the second largest monthly fall since February 1993 and closely follows the 21.8 percent fall in May 2009. The July 2009 fall is from a high level in July 2008.
The trend for the value of merchandise imports has been decreasing since August 2008, down 22.5 percent since then, although the rate of decline appears to be easing. However, initial trend estimates may be revised and should be used with caution until more data points are available.
All of the main broad economic categories were down in July 2009 compared with July 2008, with the intermediate goods category recording the largest decrease, down $544 million (25.5 percent). This fall was led by decreases in automotive diesel and crude oil. Capital goods were down $132 million (18.6 percent) led by machinery and plant equipment. Passenger motor cars were down $124 million (43.3 percent). Consumption goods decreased $73 million (7.5 percent) over the same period.
At the more detailed commodity level, the largest imports decrease in July 2009 was petroleum and products, down $294 million (35.1 percent). This decrease was mainly due to automotive diesel, down $183 million (83.5 percent), and crude oil, down $101 million (23.4 percent). Prices for both these commodities have fallen significantly since July 2008. Crude oil and diesel are both imported in large, irregular shipments, which can give rise to large percentage fluctuations.
The next largest decrease was for vehicles, parts, and accessories, down $220 million (46.2 percent). Passenger motor cars decreased $125 million (43.4 percent), led by new petrol cars with a 1500–3000cc rating (down $42 million), and new cars with a cc rating exceeding 3000 (down $39 million). Goods transport vehicles decreased $51 million (62.5 percent), led by decreases in goods transport vehicles not exceeding 3500kg, down $32 million (71.2 percent), and goods transport vehicles exceeding 20 tonnes, down $13 million (62.4 percent).
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The largest offsetting commodity showing an increase was aircraft and parts, up $70 million (143.2 percent), due to the import of large aircraft.
By country of origin, the largest decrease in imports came from Japan, down $186 million (48.4 percent), led by petroleum and products (down $73 million), and vehicles, parts, and accessories (down $72 million). The imports value for the United Arab Emirates decreased $165 million (94.3 percent), due to crude oil (down $167 million), with none being imported this month.
The Republic of Korea had the largest increase in imports, up $75 million (86.3 percent), led by increases in motor spirit (up $51 million) and diesel (up $36 million). Neither of these products were imported from Korea in July 2008.
Trade balance
In July 2009, the trade balance was a deficit of $163 million or 5.1 percent of the value of exports. This compares with an average July deficit of 23.6 percent of exports for the previous five years.
The trend for the trade balance has risen significantly over the past 11 months. While the trend is now showing a trade surplus for the last five months, the latest trend estimates may be revised and should be treated with caution until more data points are available.
The annual trade balance for the year ended July 2009 was a deficit of $2.5 billion (5.8 percent of exports). As a percentage of exports, this is only one-third of the average of 15.7 percent for the preceding five July years.
Three months ended July 2009
Exports of merchandise goods for the three months ended July 2009 were valued at $10.4 billion, a fall of $393 million (3.6 percent) from the same period of the previous year.
In the three months ended July 2009, key increases and decreases in exports compared with the three months ended July 2008 were as follows:
By commodity:
- Crude oil recorded the largest decrease, down $402 million (45.4 percent), due mainly to lower prices.
- Aluminium and aluminium articles recorded the second largest decrease, down $154 million (42.4 percent), led by a decrease in aluminium ingots and other unwrought forms.
- Logs, wood and wood articles showed the largest increase, up $83 million (15.7 percent), led by a $114 million increase in pinus radiata logs, mainly the result of increased quantities with prices also higher.
- Fruit was the second largest increase, up $60 million (9.5 percent), led by a $36 million increase in kiwifruit exports
- Milk powder, butter and cheese rose $52 million (2.8 percent), with rises in skim milk powder (up $81 million) and whole milk powder (up $63 million) partly offset by falls in natural milk constituents (down $42 million) and salted butter (down $34 million).
By country of destination:
- Exports to Australia showed the largest fall, down $304 million (12.0 percent), led by a $306 million fall in crude oil.
- The next largest fall was in exports to Japan, down $211 million (23.0 percent), led by decreases in unwrought aluminium.
- Exports to China showed the largest increase, up $379 million (64.6 percent), with significant contributions from milk powder, pinus radiata logs, dairy-based nutritional powder, and crude oil.
Imports of merchandise goods for the three months ended July 2009 were valued at $10.0 billion, down 16.6 percent from the same period of the previous year.
In the three months ended July 2009, key increases and decreases in the value of imports compared with the three months ended July 2008 were as follows:
By commodity:
- The petroleum and products category had the largest decrease, down $1.1 billion (48.9 percent), led by decreases in crude oil, down $464 million, and automotive diesel, down $341 million.
- Vehicles, parts and accessories decreased $648 million (46.9 percent) – the second largest decrease, led by passenger motor vehicles, down $374 million, and goods transport vehicles, down $196 million.
- Aircraft and parts recorded the largest increase, up $528 million (180 percent), led by an increase in large aircraft being imported, up $489 million (266 percent). Jetstar commencing domestic air services in June 2009 was the major contributor to this increase.---PDF BREAK---
By country of origin:
- Imports from Japan showed the largest decrease, down $449 million (42.6 percent), due to a variety of items, including passenger motor vehicles (down $149 million) and diesel (down $130 million).
- The second largest decrease was in imports from Singapore, down $383 million (60.4 percent) and mostly due to a decrease in petroleum and products (down $378 million or 76.0 percent).
- The largest increase was from France, up $587 million (313 percent), mostly due to the increase in large aircraft being imported.
Exchange rate movements
According to the Reserve Bank’s Trade Weighted Index, the New Zealand dollar rose 0.5 percent in July 2009 compared with June 2009, and is down 9.8 percent compared with July 2008.
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Updates to previous statistics
Provisional values published on 28 July 2009 have been updated. Merchandise trade statistics for the latest three months are provisional to allow for the inclusion of late data and amendments.
For technical information contact:
Michael Wallace or Henry Minish
Christchurch 03 964 8700
Email: overseastrade@stats.govt.nz
Next release...
Overseas Merchandise Trade: August 2009 will be released on 25 September 2009.