Trade gap narrows for October

New Zealand’s monthly trade deficit narrowed in October as an improving global market buoyed dairy exports.

The deficit was $ 846 million in October, from $ 1.4 billion last month and $ 905m in October last year, Statistics New Zealand said. The annual trade gap narrowed to $ 3.297b from $ 3.356b in September.

October exports advanced 2.2 per deficit in October. up 2.2%. up 0.6%. annual trade gap. cent to $ 3.9b, led by a 13 per cent jump in the value of dairy exports to $ 1.06b. The global dairy market is recovering after a prolonged slump.

Also helping to buoy exports in the month, fruit shipments lifted 40 per cent to $ 147m, while wood exports rose 25 per cent to $ 367m. Offsetting the gains, meat exports declined 18 per cent to $ 315m as falls in beef and lamb pushed meat down to third in the monthly rankings behind wood.

Imports advanced 0.6 per cent to $ 4.74b, boosted by the import of an aircraft in the month, which saw imports of aircraft goods jump to $ 373m from $ 38m a year earlier.

Imports of vehicles, parts and accessories, the largest category, rose 14 per cent to $ 670m. Mechanical machinery and equipment, the second- largest category, dropped 16 per cent to $ 584m, while electrical machinery and equipment slid 8.4 per cent to $ 402m.

On an annual basis, exports declined 0.5 per cent to $ 48.67b in the year through October while imports slid 0.3 per cent to $ 51.97b.