Monthly trade surplus was NZ$358 million Exports, imports both...

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    • Monthly trade surplus was NZ$358 million
    • Exports, imports both stronger than forecast
    • Economy has good momentum -economist

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    WELLINGTON, June 27 (Reuters) - New Zealand posted a wider than expected trade surplus in May, with both exports and imports stronger than forecast.

    The monthly trade surplus was NZ$358 million ($254 million)in May, data from Statistics New Zealand showed on Monday, while the trade deficit in the year to May was NZ$3.633 billion.

    Economists polled by Reuters had forecast a monthly surplus of NZ$164 million and a deficit for the year to May of NZ$3.85 billion.

    The strength in both exports and imports "suggests that the economy has pretty good momentum and it's positive for economic activity in the second quarter," said BNZ economist Doug Steel.

    Exports in May totalled NZ$4.57 billion, while imports were NZ$4.22 billion.

    China remained New Zealand's leading export destination, with Statistics New Zealand saying exports to the country jumped 26.7 percent in May versus the same month a year ago.

    Shipments of leading exports milk powder, butter and cheese fell NZ$90 million, or 9.9 percent, in May versus the same month a year ago, although dairy exports to China were up NZ$41 million for the month.

    New Zealand's dairy sector was until recently the backbone of the economy, representing around 25 percent of exports, but over the past few years plunging global dairy prices have meant that around 85 percent of New Zealand dairy farms are running at a loss.

    ($1 = 1.4077 New Zealand dollars)

 
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