Vehicles and parts led the biggest import fall in June, down $256 million compared to the same period last year, according to Stats NZ.
This includes a $189m fall in new and used car imports and $67m fall in trucks and vans for the month.
While imports of vehicles fell, registrations bounced back in June 2020 to similar levels when compared with the same month last year.
Overall, imports were up slightly for the month mainly due to the arrival of the Royal New Zealand Navy’s new vessel, HMNZS Aotearoa.
The value of total merchandise goods imports was up $11m (0.2%) to $4.6 billion in June compared to the year prior.
A rise in imports of ships and boats was largely offset by continued falls in the imports of vehicles and fuel.
Excluding the large one-off HMNZS Aotearoa import, the value of total goods imports in June 2020 was $4.2b, a fall of $384m (more than 8%) from a year earlier.
The monthly trade balance for June 2020 (excluding the new vessel) was a surplus of $426m.
“Without the Aotearoa, imports fell for the third consecutive month, following the start of the COVID-19 alert level 4 lockdown in New Zealand at the end of March,” international statistics manager Darren Allan says.
“The latest vehicle registration numbers indicate sales of vehicles may be recovering.
“Given the continued low imports of vehicles, it seems the car sales are of existing stock, after demand fell during the lockdown period,” he says.
The second largest fall in goods imports was in petroleum and products, down $217m. Crude oil fell $215m (66%), down in both quantity and price.
Total exports rise led by dairy
Higher milk powder exports and a recovery in log exports helped boost total exports in June 2020, up $107m to $5.1b from June 2019.
Leading the rise was New Zealand’s biggest export commodity group, milk powder, butter, and cheese, up $90m to $1.2b from last June.
Milk powder rose $108m to reach $650m, which was partly offset by a fall in milk fats including butter, down $38m
In contrast to the falls in previous months, quantities and values of log exports in June 2020 were up on June 2019, up 8.8% and 7%, respectively.
The monthly trade balance for June 2020 was a surplus of $426 million. Excluding the new vessel.
US imports down, China up
Imports from the United States had the biggest fall in June 2020, down $111m compared to the same month a year prior. Mechanical machinery and equipment (such as turbo-jet and turbo-propeller parts) led the fall, down $58m (41%).
“With ongoing travel restrictions and international arrivals at a 61-year low, there’s less need for imports of aircraft parts,” Allan says.
Goods imports from China were up $97m (10%) in June compared to the year prior. The leading rises were electrical machinery and equipment (such as mobile phones) up $45m, articles of plastic (such as disposable aprons) up $27m, and textiles (such as face masks) up $23m.
It’s no surprise that the industry is still struggling due to the pandemic. As mentioned in the article, it’s down $256 million this month. With less movement globally, we may see this trend continue in the coming months although let’s hope that it won’t fall drastically and it recovers really soon.