Australia Trade Surplus Smallest in 6 Months

Australia's trade surplus narrowed 93 percent to AUD 0.1 billion in October of 2017 from a downwardly revised AUD 1.60 billion in the prior month and way below market expectations of AUD 1.4 billion. It was the smallest trade surplus since April, as exports declined by 3 percent from a month earlier to AUD 31.87 billion while imports went up 2 percent to AUD 31.77 billion.

Sales of non-rural goods (bulk commodities and non-bulk commodities) fell by 5 percent to AUD 18.62 billion, mainly due to metal ores and minerals (-10 percent); metals (-16 percent); coal, coke and briquettes (-3 percent). 

Exports of rural goods decreased by 2 percent to AUD 85 million, mainly due to meat and meat preparations (-6 percent) and other rural (-2 percent).

Sales of non-monetary gold (gold which is not owned by monetary authorities and can be in the form of bullion, including coins, ingots or bar with a purity at least 995 parts per thousand) jumped by 24 percent to AUD 1.86 billion. 

Net exports of goods under merchanting increased by 25 percent to AUD 60 million.

Exports of services dropped by 2 percent  to AUD 7.31 billion, mainly due to tourism related services (2 percent).

Purchases of intermediate and other merchandise goods went up 4 percent to AUD 9.259billion. 

Imports of consumption goods increased by 2.0 percent to AUD 8.4 billion. The main components contributing to the rise were food and beverages, mainly for consumption (10 percent) and textiles, clothing and footwear (5 percet).  

Meanwhile, imports of non-monetary gold went up by 4 percent to AUD 401 million.

Purchases of capital goods declined by 2 percent to AUD 6.03 billion, mainly driven by industrial transport equipment n.e.s (8 percent); civil aircraft and confidentialised items (17 percent) and capital goods n.e.s (8 percent). Partly offsetting these falls were telecommunications equipment (11 percent) and ADP equipment (4 percent).

Imports of services increased by 2 percent to AUD 7.39 billion. The main component contributing to the rise were transport (7 percent) and travel (1 percent). Partly offsetting these rises was other services (-1 percent). 

Considering January to October 2017, trade surplus came in at AUD 13.30 billion, compared to a AUD 21.37 billion deficit in the same period of the preceding year.

Australia Trade Surplus Smallest in 6 Months

ABS | Rida Husna |
12/7/2017 10:41:39 AM