NZ: Worse than expected trade balance figures - TDS

New Zealand’s August trade balance was worse than expected at NZ$-1.2b, but in fact is the exact same deficit as last year, notes the analysis team at TDS.

Key Quotes

“August is a deficit month seasonally since it is the middle of winter. Imports stronger than expected at NZ$4.92b, led by a 6.5% jump in crude oil. In addition to the weak trade balance data, September business confidence shrank to zero (from 18.3). We place this slump in confidence squarely at the feet of pre-election nerves (where Labour threatened to tax everything). We will be looking for an October bounce if National-NZF form a coalition government in the coming weeks.”