New Zealand terms of trade index dropped -0.7% qoq in Q1, worse than expectation of 1.3% rise. Export volume rose 1.8% qoq while import volumes fell -3.9% qoq. Export prices dropped -0.2% qoq while import prices rose 0.5% qoq. Overall export values for goods rose 3.6% qoq to NZD 15.1B while import values dropped -1.9% qoq to NZD 15.1B.
“The fall in export prices coincided with the COVID-19 outbreak, which was declared a global pandemic in March 2020,” business prices delivery manager Geoff Wong said. “The COVID-19 outbreak affected demand in export markets and disrupted supply chains, such as sea and air freight.”
Also released, building permits dropped -6.5% mom in April, comparing with March’s -21.7% mom decline.