New Zealand’s commodity export price index rose to a record in November, led by hides, lumber and meat, ANZ National Bank Ltd. said.
The index increased 4.5 percent from October, when it gained 3.5 percent, ANZ National said in a report released in Wellington today. After adjusting for gains in the currency, prices rose 1.4 percent.
Prices have gained 24 percent from a year earlier, adding to signs that exports, which make up 30 percent of New Zealand’s economy, will help stoke an economic recovery next year. It takes time for higher farm incomes to flow through into spending in the cities, New Zealand Institute of Economic Research Inc. Principal Economist Shamubeel Eaqub said.
“We are more optimistic about the outlook from mid-2011,” he told reporters and institute clients in Wellington yesterday. “We have strong commodity prices. They will flow through later next year.”
A report this week showed New Zealand exports rose to a four-month high in October, led by record dairy shipments amid increased global prices and demand from China.
Still, growth in other markets including Europe and the U.S. is slowing and the New Zealand dollar’s 10 percent gain the past six months may also curb overseas sales, Eaqub said.
Adjusting for New Zealand’s stronger dollar, prices increased 16 percent since November last year, today’s report showed. Ten of 15 commodities tracked by ANZ National showed gains from October, with three unchanged and two declines, the bank said today.