Terms of trade

Press, 12 September 1984, Page 37

Terms of trade

The value of New Zealand’s overseas terms of trade index for the June, 1984, quarter (Base: December 1957 year, 100) was 74. This is two index points lower than the index for the March, 1984, quarter and the same level as for the June, 1983, quarter, reports the Government Statistician. The terms of trade index effectively measures the changing volume of imports which can be financed per unit volume of exports. The export price index increased 4 per cent from the March, 1984, quarter to the June, 1984, quarter and the import price index rose 2.2 per cent over the same period. Export price increases of

significance in the June, 1984, quarter were meat, 1.9 per cent; and wool, 3.0 per cent. The effect of the increases was partly offset by decreases in dairy produce, -4.8 per cent; and manufactured goods other than food, -0.6 per cent. Significant increases in the prices of imports over the same period were recorded for textile yam, fabrics, and related products, 5.4 per cent; transport equipment, 5.3 per cent; and food, live animals, beverages and tobacco products, 2.5 per cent. Price decreases were recorded for imports of electric machinery and apparatus, 4.0 per cent, and crude materials other than fuels, 1.1 per cent.