NZ Terms of Trade Miss Expectations in Q3

New Zealand’s merchandise terms of trade fell 2.1% quarter-on-quarter in the three months to September 2025, reversing the prior quarter’s improvement and way below expectations of a 0.3% increase. The deterioration reflected weaker relative export prices, which fell 1.6%, against a 0.5% increase in import prices. In value terms, export values for goods rose 3.0% to $19.1 billion amid higher export volumes, while import values edged up 0.1% to $19.4 billion as import volumes fell 1.2%. The weaker terms of trade indicate reduced purchasing power for New Zealand exporters despite rising export volumes.