New Zealand recorded a trade deficit of $649m in July

New Zealand recorded a trade deficit of $649m in July, a slightly larger deficit than the market's expectation. This saw the annual trade deficit narrow to $2,690m. The exports picking up by 8% (adjusted for seasonal distortions), which was largely as expected. This was contributed to by a pick-up in the value of dairy exports, which likely reflects growth in volumes rather than prices. 

There was also a pick-up in fruit exports. By market, most of the growth was accounted for by increased exports to China. July also saw a 2.8% increase in overall imports, despite a pullback in petroleum imports. July's increase was spread across industries.