Australia: Trade surplus off high, but still elevated - Westpac

Andrew Hanlan, Research Analyst at Westpac, notes that Australia’s trade surplus narrowed a little in July, moderating to $1.55bn, down from the June high of $1.9bn but still eclipsing the monthly average for the June quarter of +$1.1bn.

Key Quotes

“Exports declined by 1.0%, with falls in metal ores and gold, partially offset by a lift in coal.”

“Imports were flat in the month, with a higher fuel bill offset by falls elsewhere, including fewer imports of civil aircraft.”

“More generally, exports are trending higher and are expected to add to growth over coming quarters.”

“Additional LNG capacity is coming on stream, which will underpin higher export shipments, and the lower dollar is providing a boost to our international competitiveness, particularly for services (including education and tourism) and manufacturing.”