A boomer $656 million trade surplus in May has capped a hat-trick of good news for the economy in just a few days, reinforcing expectations that both interest rates and the Kiwi dollar will rise.
Tuesday, June 29th 2004, 8:19AM
by The Landlord
The dollar closed at just under US64 cents yesterday, down about US0.10c.
Exports of dairy products, meat and fruit are booming – helping push the May trade surplus to a surprise $656 million, many times better than economists expected.
The export figures reflected both strong volumes and stronger prices as world commodity prices improved, economists said.
The value of exports for the three months to May was about 10 per cent higher than for the same period a year earlier.
Deutsche Bank expected growth of 16 per cent for June quarter exports, with growth in volumes accounting for about two thirds of that and higher prices for the balance. In other words, higher world commodity prices are overwhelming the impact of a higher Kiwi dollar.
