New Zealand's Trade Deficit shrunk in the year through July as imports contracted and exports showed no significant movement. Indeed, the month saw the deficit contract for the sixth of seven months with imports declining 20.9%. Much of the brunt was felt by Europe, which saw it's exports to the country plummet 43.0%. Its largest trading partner, Australia, actually saw itself exporting more goods to the island country -- by a magnitude of 25.2%. The data comes only a week after Prime Minister John Key stated that it wanted to form a "single economic market" with its neighbor across the Tasman Sea. But the broader decline in New Zealand demand from a broad offers an interesting point. Quarterly spending in the month ending June rose for the first in seven of such periods. While many may have hailed the news as a sign of a recession bottom, many ought to ask if the import performance will be any indication of sales action to come in the third quarter. With the country's currency gaining only a mere 2.0% in June and July combined, imports are likely to see little improvement.
BUSINESS
