New Zealand Exports Fall 3.7% in June Quarter Trade Deficit Widening

New Zealand's goods exports fell by 3.7% to $19.7 billion in the June quarter, marking the first quarterly decline since Q3 2023 and signaling a weakening economic momentum following a strong start to the year. The quarterly trade balance registered a deficit of $709 million, adding to concerns about slower growth. This downturn in exports, especially after an 11% rise the previous quarter, is seen as supportive of a potential Reserve Bank rate cut in August, as inflation data also points to a cooling economy. The export weakness impacted the NZ sharemarket, with major stocks like Fisher & Paykel Healthcare and Auckland International Airport declining. In corporate moves, Fletcher Building is exploring divestment options to free capital, and Sky TV rose after agreeing to acquire the struggling TV3 for $1. Overall, the export slump and trade deficit are shaping market sentiment and monetary policy expectations.