Australia Trade Surplus Narrows 20% in July
Australia's trade surplus narrowed by 20 percent month-over-month to AUD 1.55 billion in July of 2018 from an upwardly revised AUD 1.94 billion in the prior month and above market expectations of a AUD 1.4 billion surplus, as exports fell while imports showed no change.
9/6/2018 9:55:44 AM
Exports from Australia decreased by 1 percent month-on-month to AUD 36.07 billion in July 2018. Sales of non-rural goods dropped 1 percent to AUD 22.79 billion, mainly due to metal ores and minerals (-5 pct); other non-rural (-29 pct); and other mineral fuels (-1 pct). In addition, exports of rural goods went down 2 percent to AUD 4.06 billion, dragged by cereal grains & cereal preparations (-11 pct); and wool and sheepskins (-8 pct). Also, sales of non-monetary gold tumbled 10 percent to AUD 1.79 billion. Exports of services were almost unchanged at AUD 7.42 billion, due to travel sales which declined 1 percent while sales of other services increased by 2 percent. Meantime, net exports of goods under merchanting jumped 175 percent to AUD 11 million.
Imports were almost unchanged month-over-month at AUD 34.52 billion in July. Purchases of intermediate and other merchandise goods rose by 6 percent to AUD 11.32 billion, driven by fuels and lubricants (23 pct). Also, purchases of non-monetary gold went up 11 percent to AUD 707 million. Imports of services increased 1 percent to AUD 7.75 billion, led by travel (2 pct); transport (2 pct); and other services(1 pct). In contrast, purchases of capital goods declined 6 percent to AUD 6.17 billion, due to civil aircraft and confidentialised items (-49 pct); telecommunications equipment (-4 pct); machinery and industrial equipment (-2 pct); ADP equipment(-4 pct); and industrial transport equipment n.e.s. (-3 pct). In addition, imports of consumption goods declined 4 percent to AUD 8.58 billion, mainly due to textiles, clothing and footwear (-9 pct); consumption goods n.e.s. (-2 pct); and food and beverages, mainly for consumption (-4 pct).
Considering the first seven months of the year, the trade surplus narrowed to AUD 8.21 billion from AUD 10.54 billion in the same period of 2017.