November 07, 2024 01:38 GMT
AUSTRALIA DATA: Trade Surplus Narrows, Capex Imports Soften
AUSTRALIA DATA
The September merchandise trade surplus narrowed more than expected to $4.61bn from $5.28bn as the fall in exports outpaced imports. Coal and iron ore prices fell on the month. The surplus has been trending lower for around a year as commodity prices have eased but looking through the volatility it may be stabilising. Q3 data showed another terms of trade deterioration in the quarter.
Australia merchandise trade balance A$mn
Source: MNI - Market News/ABS
- Exports fell 4.3% m/m to be down 10.2% y/y following -8.4% y/y with other mineral fuels weighing. The weakness was concentrated in non-rural goods (-4.2% m/m & 11.6% y/y), while rural rose 5.4% m/m but is still down 5.6% y/y. Australia’s main mining exports fell in September, except metals.
- Imports declined 3.1% m/m to be 7.8% y/y lower with the weakness in fuels and lubricants. The data is nominal and so the fall in oil prices in September, Brent -7.5% m/m, pushed import values down. Lower petrol prices have helped to bring headline inflation down though.
- Capital and intermediate goods imports were lower down 6.3% m/m and 4.6% m/m respectively with annual growth trending lower. The decline in capex goods was due to lower machinery & equipment, other capital and ADP equipment, while telecoms rose. It is signalling lacklustre investment.
- Consumer goods imports rose 0.8% m/m to be down 2.1% y/y with the monthly increase driven by food & beverages and non-industrial transport equipment.
Australia goods exports vs imports y/y%
Source: MNI - Market News/ABS
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