WELLINGTON, Dec 10 (Reuters) - New Zealand's export volumes fell for the third straight quarter in the three months through September as the global slowdown and fall in commodity prices offset the benefits of a lower currency.
The data backed views that trade will restrain growth into next year and the central bank would need to keep cutting interest rates to help stimulate the recession-hit economy.
Export volumes dropped 2.3 percent during the September quarter, following a 3.8 percent fall in the previous quarter, as dairy exports suffered because of a slowdown in global demand, Statistics New Zealand (SNZ) said on Wednesday.
Analysts said the data pointed to ongoing pressure on New Zealand's trading position.
'It just adds to the many reasons for the Reserve Bank to keep cutting rates,' said Su-lin Ong, senior economist at RBC Capital Markets.
The New Zealand dollar was little moved after the data, and last traded at $0.5401/08. The yield on the 90-day bank bill was unchanged at 5.32 percent.
The terms of trade fell 2.3 percent in the September quarter as high-priced oil boosted import costs and outstripped export gains. However, terms of trade were 4.4 percent higher than a year earlier.
A Reuters poll had forecasters picking a 2.1 percent fall in the terms of trade on the previous quarter, but a rise of 4.3 percent on a year ago.
Import prices rose 11.1 percent during the quarter against an 8.6 percent rise for exports.
New Zealand has been in its first recession in more than a decade since the start of the year with expectations that activity contracted in the third quarter as well.
A preliminary Reuters poll has a forecast of a 0.4 percent fall in gross domestic product in the third quarter. Official data is due on Dec. 23.
The Reserve Bank of NZ last week forecast terms of trade to deteriorate markedly over the next two years as a weak global outlook dampens export prices, which will decline more than import prices.
The central bank slashed rates by 150 basis points last week, taking its official cash rate to a five-year low of 5 percent.
(Reporting by Gyles Beckford; Editing by James Thornhill) Keywords: NEWZEALAND ECONOMY/TRADETERMS (gyles.beckford@reuters.com ; +64 4 471 4231; Reuters Messaging: gyles.beckford.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The data backed views that trade will restrain growth into next year and the central bank would need to keep cutting interest rates to help stimulate the recession-hit economy.
Export volumes dropped 2.3 percent during the September quarter, following a 3.8 percent fall in the previous quarter, as dairy exports suffered because of a slowdown in global demand, Statistics New Zealand (SNZ) said on Wednesday.
Analysts said the data pointed to ongoing pressure on New Zealand's trading position.
'It just adds to the many reasons for the Reserve Bank to keep cutting rates,' said Su-lin Ong, senior economist at RBC Capital Markets.
The New Zealand dollar was little moved after the data, and last traded at $0.5401/08. The yield on the 90-day bank bill was unchanged at 5.32 percent.
The terms of trade fell 2.3 percent in the September quarter as high-priced oil boosted import costs and outstripped export gains. However, terms of trade were 4.4 percent higher than a year earlier.
A Reuters poll had forecasters picking a 2.1 percent fall in the terms of trade on the previous quarter, but a rise of 4.3 percent on a year ago.
Import prices rose 11.1 percent during the quarter against an 8.6 percent rise for exports.
New Zealand has been in its first recession in more than a decade since the start of the year with expectations that activity contracted in the third quarter as well.
A preliminary Reuters poll has a forecast of a 0.4 percent fall in gross domestic product in the third quarter. Official data is due on Dec. 23.
The Reserve Bank of NZ last week forecast terms of trade to deteriorate markedly over the next two years as a weak global outlook dampens export prices, which will decline more than import prices.
The central bank slashed rates by 150 basis points last week, taking its official cash rate to a five-year low of 5 percent.
(Reporting by Gyles Beckford; Editing by James Thornhill) Keywords: NEWZEALAND ECONOMY/TRADETERMS (gyles.beckford@reuters.com ; +64 4 471 4231; Reuters Messaging: gyles.beckford.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.