New Zealand Q4 Terms Of Trade Tumble 2.0%

(RTTNews) - New Zealand's terms of trade slid 2.0 percent on quarter in the fourth quarter of 2015, Statistics New Zealand said on Tuesday.

That missed forecasts for a flat reading following the downwardly revised 3.8 percent contraction in the three months prior (originally -3.7 percent).

Seasonally adjusted goods export volumes fell 2.4 percent, while goods import volumes rose 0.7 percent.

Goods export values fell 6.1 percent to NZ$11.4 billion), while goods import values fell 1.9 percent to NZ$12.7 billion.

Both exports and imports had widespread price decreases. Prices for exported goods fell 5.7 percent, led by dairy, down 13 percent, and meat, down 5.1 percent. Imported goods prices fell 3.7 percent, led by petroleum products down 25 percent for the quarter.

"Petroleum import values fell, driven by lower prices, with both at their lowest level since the March 2005 quarter," international business and performance senior manager Jason Attewell said. "Falling world petroleum prices are pushing petroleum values down while volumes have shown little change."

Seasonally adjusted export values fell 6.1 percent in Q4, following a 5.4 percent rise in the third quarter. Lower prices and volumes contributed to the fall this quarter. Dairy values fell 6.7 percent, led by lower prices.

Terms of trade is a measure of the purchasing power of New Zealand's exports abroad. A decrease means New Zealand can buy less imports for the same amount of exports.