AUSTRALIA DATA
The merchandise trade surplus widened more than expected in April to $6548mn from $4841mn due to a sharp drop in imports. Exports fell 2.5% m/m while imports sank 7.2% with the weakness broad-based across the major components. The series is nominal and so price fluctuations are important especially for commodities.
- The trade surplus has now been trending lower for almost two years.
Australia merchandise trade surplus $mn
Source: MNI - Market News/ABS
- Goods exports are down 5.9% y/y and have been negative year-on-year for the last 13 months. Both rural and non-rural goods fell on the month but the weakness was driven by Australia’s major commodity exports. Non-monetary gold shipments have been very strong up 83% y/y in April.
- Merchandise imports are up 2% y/y. The April weakness was seen across consumer (-5.4% m/m), capital (-5.8%) and intermediate goods (-9.6%) but looking through the volatility 3-month average annual rates are still solid.
- Clothing & footwear and consumer goods imports were weak reflecting soft consumption but vehicles rose. In terms of the investment outlook, machinery & equipment and industrial transport fell while telecoms equipment rose.
Australia goods exports vs imports y/y% 3-month ma
Source: MNI - Market News/ABS
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