Australia: Trade surplus improves in September – ANZ

Australia’s trade surplus widened in September, with the trade balance rising to AUD1,745m from a downwardly revised AUD873m in August, points out the research team at ANZ.

Key Quotes

“The improvement in the trade balance was driven by rising exports – with a solid pickup in exports of metal ores being the main contributor. Exports of services also posted a solid gain. Import values were unchanged in the month.”  

“Total export values rose 2.9% m/m, the fastest pace since May, adding AUD925m to the trade surplus. Resources ex-nonmonetary gold saw the fastest increase in the month (+3.8% m/m). The strength in metal ores and mineral (+8% m/m) offset declines in coal (-0.3% m/m) and other mineral fuels (-1.2% m/m). Encouragingly, service exports (up AUD102m) continued to strengthen, growing 1.4% m/m.” 

“Import values were steady for the second straight month in September. Imports of intermediate goods and services both fell in the month, down 0.4% (AUD35m) and 1.3% m/m (AUD97m), respectively. Imports of consumption goods grew, after declining in the prior two month, increasing AUD191m (+2.4% m/m). Capital goods imports improved (+0.9% m/m), likely reflecting the strong pipeline of infrastructure projects. Service imports were a drag as they fell AUD97m (-1.3% m/m).”