Australia: Trade surplus off the highs, but still elevated – ANZ

ANZ analysts point out that the Australia’s monthly trade surplus dipped to AUD5.9bn, still high but down from July’s revised surplus of AUD7.3bn.

Key Quotes

“Underlying this was a 3.4% m/m decline in exports, while imports were down 0.4% m/m.”

“Total resource exports fell 5.5% m/m in August, led by a 10% decline in metal ores and minerals, while coal fell 4%. The volatile non-monetary gold component declined 22% (an AUD601m fall). Manufacturing goods exports were down 2.3% but rural goods increased 1.4%, helped by 5% increases in both cereals and meat. Service exports rose 0.6%, as travel increased 0.7%.”

“Capital goods imports dropped 1.9% m/m, with a 5.4% fall in machinery and equipment more than offsetting 4.2% and 26.2% rises in transport equipment and civil aircraft, respectively. Consumption goods imports fell 0.9% as household electrical items dropped 3.2%. Intermediate goods imports, excluding fuel, fell 3.6% as parts for capital goods declined 3%. Fuel imports declined 7.2%. Service imports rose 1.9% as travel rose 0.8%.”