By James Glynn

WELLINGTON--New Zealand's merchandise terms of trade fell 1.8% in the third quarter from the second, as export prices fell more than import prices.

According to Statistics New Zealand, the country's terms of trade have now fallen in four of the last five quarters.

Goods export prices fell 2.8% over the quarter, led by falls in the prices of dairy, meat, and forestry, it said

Dairy prices fell 3.7% in the quarter, with forestry prices down 4.1%, led by a fall in the price of wood in the same period, NZ Stats said.

Goods import prices fell 1.0% in the quarter, led by a fall in the price of plant and machinery. This fall was partly offset by a rise in the price of petroleum and petroleum products, it added.

Terms of trade is a measure of the purchasing power of New Zealand's exports abroad.

"The fall in our terms of trade is a reflection of the falling prices of our primary produce exports," international statistics senior manager Jason Attewell said.

"Meat, dairy, and forestry were all down in price, with meat and dairy seeing significant falls in values as well," he added.

Write to James Glynn at james.glynn@wsj.com

(END) Dow Jones Newswires

November 30, 2016 17:20 ET (22:20 GMT)

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