NZ: Good terms of trade increased 0.6% q/q in Q2 - ANZ

Liz Kendall, Senior Economist at ANZ, notes that New Zealand’s good terms of trade increased 0.6% q/q in Q2, less than expected and is below the peak seen at the end of last year.

Key Quotes

“The OTI goods terms of trade increased 0.6% q/q in Q2, to be below the high in Q4 last year.The terms of trade remain elevated and are expected to continue boosting national purchasing power.”

“NZD export prices increased 2.4% q/q, boosted by dairy and meat prices (which increased 3.2% and 3.6% respectively).”

“NZD import prices increased 1.7% q/q.”

“Volumes data suggest net exports will exert a small drag on Q2 GDP growth, but that drag appears to be dissipating. Seasonally adjusted export volumes rose 1.1% q/q, led by meat and dairy, along with a boost from non-fuel materials. Import volumes rose 0.9%, due to a boost from transport equipment, with falls in all other categories.”