Australia: Trade surplus back above $7bn – ANZ

ANZ analysts note that the Australia’s trade balance has lifted back above $7bn in September, comfortably beating market’s expectations.

Key Quotes

“What’s more the August surplus was revised up by nearly $700m. Exports were up 3.5% m/m to be nearly 15% higher for the year. Imports gained 2.5% m/m, but are only up 3.2% y/y. It was encouraging to see capital goods imports rise by 11.6% m/m, for an annual gain of 8.2%. Imports of consumption goods were very subdued, up just 0.7% m/m and 0.8% y/y.”

“Total resource exports rose 4.5% m/m in September and are now 22% higher than a year ago. Much of the gain has been driven by gold exports, however. Excluding non-monetary gold, resource exports were up 2.3% m/m and are just 1% higher than a year ago. Rural exports were up a strong 6.4% m/m, driven by a sharp rise in cereal exports. Compared to a year ago, rural exports are down 2.3%. Service exports are up 0.8% m/m.”

“Capital imports excluding civil aircraft rose a strong 11% m/m and are 8.7% higher than a year ago. Much of the gain was in telecommunication equipment. Consumption imports remain soft and are little changed from a year ago, not overly surprising given the weakness in household spending.”