(Updates to add detail, comment from economist)
WELLINGTON, Sept 1 (Reuters) - New Zealand's terms of trade fell 2.1 percent in the second quarter as price falls for key commodities offset record export levels, Statistics New Zealand said Thursday.
Export volumes rose a record 10.2 percent, powered by strong dairy exports, as well as meat, forestry and fruit exports. Import volumes rose 0.7 percent.
Export prices fell 1.9 percent, while import prices increased 0.2 percent. Economists were expecting the index to show a 2.0 percent fall, with export prices falling 2.5 percent and imports remaining unchanged, according to a Reuters poll.
"While the amount of goods New Zealand exported this quarter was at record levels, price falls for key commodities meant the amount that we earned from exports was little changed," international statistics senior manager Jason Attewell said.
ANZ Senior Economist Philip Borkin said the "outlook for terms of trade looks good," given a recent rise in dairy prices.
Global dairy prices have risen strongly in recent auctions, adding to the view the market may be on the road to recovery
. Until recently, dairy was the backbone of New Zealand'seconomy, representing around 25 percent of exports. But dairy prices have dropped sharply from their record highs in 2013, due to China's economic slowdown and global oversupply.
Borkin also said the 10 percent gain in export volumes suggests some upside to the second quarter gross domestic product numbers. Statistics New Zealand is due to report GDP on September 15.
