Australia Posts Smallest Trade Surplus in 10 Months

Australia's trade surplus decreased to AUD 4.50 billion in October 2019 from a downwardly revised AUD 6.85 billion in the previous month and below market consensus of a surplus of AUD 6.1 billion. This was the smallest trade surplus since December last year, as exports slumped 5 percent month-on-month to AUD 40.75 billion, while imports rose 0.4 percent hitting a record high of AUD 36.25 billion.
ABS l Rida Husna | rida@tradingeconomics.com 12/5/2019 9:55:39 AM
Exports slumped 5 percent month-over-month to AUD 40.75 billion in October. Sales of non-rural goods shrank 6 percent to AUD 25.91 billion, mainly due to metal ores and minerals (-11 percent), other mineral fuels (-6 percent), coal, coke and briquettes (-5 percent), and metals (-14 percent). Also, exports of non-monetary gold tumbled 25 percent to AUD 2.03 billion. In contrast, shipments of rural goods grew 3 percent to AUD 4.14 billion, led by meat and meat preparations (4 percent) and cereal grains and ceral preparations (5 percent). In addition, net exports of goods under merchanting jumped 93 percent to AUD 29 million, and sales of services rose 1 percent to AUD 8.65 billion, mostly driven by travel (1 percent). 

Imports rose 0.4 percent over a month earlier to a record high of AUD 36.25 billion. Purchases of consumption goods increased by 4 percent to AUD 9.17 billion, largely due to non-industrial transport equipment (8 percent), food and beverages, mainly for consumption (5 percent) and consumption goods n.e.s. (2 percent). Also, imports of intermediate and other merchandise goods advanced 2 percent to AUD 11.34 billion, driven by fuels and lubricants (6 percent) and other parts for capital goods (6 percent). On the other hand, purchases of capital goods fell 2 percent to AUD 6.59 billion, due to capital goods n.e.s. (-26 percent) and industrial transport equipment n.e.s. (-8 percent). Also, imports of non-monetary gold slumped 35 percent to AUD 469 million. Additionally, purchases of services fell AUD 40 million to AUD 8.69 billion, mostly led by travel (-1 percent) and other services (-1 percent).

Considering the first ten months of the year, trade surplus surged to AUD 58.64 billion from AUD 16.51 billion in  the corresponding period the prior year.

Australia Posts Smallest Trade Surplus in 10 Months