The value of exported goods increased by $296 million, or 8 per cent, in July, compared with that corresponding month last year.

According to figures released by Statistics New Zealand, this was led by a rise in the value of milk powder exports.

Imports increased by $383 million, or 11 per cent.

All three broad economic categories - capital, intermediate and consumption goods - rose in value.

'The increase in milk powder drove the increase in exports,” says industry and labour statistics manager Neil Kelly.

'The trade surplus has decreased compared with July 2011, as the increase in imports was stronger than the increase in exports.”

The trade balance for July 2012 was a small surplus of $15 million, 0.4 per cent of exports. This compares with a surplus of $103 million, or 2.8 per cent of exports in July 2011.

Seasonally adjusted exports fell 0.4 per cent and imports fell 1.5 per cent compared with June 2012.

Most major export commodities fell, offset by milk powder, butter and cheese, which increased by 20 per cent.