Exports and imports fall again
New Zealand – Poor commodity prices compounded low demand in key export markets for the September quarter, losing $640 million in value.
Compared with the June quarter, exports were down 6.8 per cent to $9.4 billion, the third successive month of decline. Imports dropped further, down 8 per cent to give a trade deficit of $104m.
Deutsche Bank chief economist Darren Gibbs said it seemed volumes of exports were actually higher than the June quarter, but international prices let New Zealand down.
The commodity sector showed the effect of low prices most sharply, he said. Dairy products and meat exports made up the largest decline, accounting for $430m in lost export revenue.
But crude oil, aluminium, iron and steel exports were harder hit, all down about 30 per cent.
Wood and wine exports showed some strength, up about 5 per cent to 6 per cent compared to the June quarter, but were in scarce company with most sectors showing declines. The largest relative decline went to exports of ships, boats and floating structures, which had more than halved from a $100m export sector in June to $45m.
Peter White-Robinson, chairman of New Plymouth-based superyacht builders Fitzroy Yachts, said they had struggled for a while to secure new orders, well off their optimal one yacht a year. “There’s no doubt about it, it dropped right away. We were down to 20 months between orders.”
A new venture based in Whangarei, Fitzroy Motoryachts, was exhibiting at the Fort Lauderdale boat show in Florida now, and Mr White-Robinson said they had a few inquiries, but it was unknown whether orders would follow.
The drop in export dollars for the boat building industry was probably due to volume, given New Zealand’s reputation for quality.
Mr White-Robinson said people looking for cheap boats went to China, and New Zealand manufacturers did not tend to discount to get sales. “The dollar is a curse for us but we have not lost boats because of the dollar.”
Category: Industry, Shipyard News
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