Australia: Trade surplus narrows as imports surge - Westpac

Andrew Hanlan, Research Analyst at Westpac, notes that the Australia’s trade surplus was smaller than expected for October, at $2.3bn (market median $3.0bn and Westpac $3.5bn) as both imports and exports surprised with imports to the high side and export advancing by less than anticipated.

Key Quotes

“Imports jumped by 3.2% reflecting a combination of higher prices and higher volumes. Capital goods and fuel were the main areas of strength.”

“Exports earnings advanced by 1.3%. Strength was evident across coal, fuels and services, as anticipated.”

“For the trade sector, it’s a lacklustre start to the fourth quarter. A surplus of $2.3bn for October is broadly in line with the average for the third quarter, of $2.4bn. During 2018, the trade surplus has been on an improving trend supported by higher commodity prices and the uptrend in export shipments.”