Another Trade Surplus On The Cards, Albeit Narrower

The ABS notes that "the total value of goods imported increased by A$2.5 billion or 11% in July 2020, according to the latest preliminary international trade in goods figures. From June to July 2020, imports of road vehicles increased by A$792 million or 49% while imports of petroleum increased A$244 million or 15% over the same period. The large monthly increases in imports of road vehicles and petroleum follow low values in May and June 2020 at the height of Australia's COVID-19 restrictions. However, despite the month-on-month increases, imports of road vehicles and petroleum remain low by historical standards, down 25% and 42% respectively when compared to July 2019. Adding to the overall monthly increase in imports were: transport equipment (including aircraft); non-monetary gold; and imports of commodities associated with personal protective equipment, including face masks. While imports increased, the value of goods exported in July 2020 declined by A$2.0 billion or 6% driven by declines in exports of resource commodities including iron ore, copper, and coal. The decline in exports of iron ore follows high values across 2020 including a record high export value of A$9.9 billion (revised) in June 2020. Partially offsetting these declines, exports of non-monetary gold were up 55% to A$3.5 billion, a record high for this series. Despite decreasing in July 2020, Australian exports of goods remain strong by historical standards, with Australia recording a goods trade surplus for the month. This follows 31 consecutive months of surpluses…the decline in exports and increase in imports in July 2020 lead to a goods trade surplus of A$3.295bn."