International Trade — July | By the numbers
- Trade Balance in July was +$A1.551bn, which was higher than the market forecast for a surplus of +$A1.4bn. June’s trade surplus was upgraded to $A1.937bn from $A1.873bn.
- The change in the monthly trade balance was -$A386m (prior +$1.165bn)
- Exports ($ value) fell by -1%m/m to $A36.070bn with annual growth at +13.7%
- Imports ($ value) were little changed (+0.1%m/m) at $A34.519bn, while year-ended growth is +9.8%
International Trade — July | The details
The total value of goods and services exported fell by $362m (-1%) in July to $36.070bn. It was the goods side (-$396m) that accounted for that decline; non-rural goods -$138m, non-monetary gold -$189 and rural goods -$76m.
Isolating non-rural goods, the value of iron-ore exported fell by $367m in July, which was attributable to lower volumes as prices increased in the month. Coal exports increased $181m reflecting stronger prices and LNG volumes lifted a sharp 19%, though prices were weaker.
The value of services exported increased by $34m (+0.5%) to $A7.418bn, with rises from 'other services' (+$44m) and transport (+$17m). It was a softer month for tourism, though, with a decline of $22m.
For imports, the total bill in July was $A34.519bn, which was a small rise of $24m compared to the previous month.
Goods imports declined by $85m, with heavy falls in capital goods (-6%) and consumption goods (-4%). Intermediate goods, however, increased by +6% — led by fuel reflecting higher prices — while non-monetary gold saw a rise of 11%.
Services imports lifted by $109m (+1%) in the month to $A7.745bn. Within this, there were rises for; travel (+$67m), transport (+$23m) and 'other services' (+$18m%). Overseas tourism also increased by $95m.
International Trade — July | Insights
Overall, the trade surplus remains healthy at an above-average level compared to Q2 (around $1.08bn) and 2018 (around $1.17bn). While iron-ore and coal export volumes were lower this month, the LNG sector is surging with more to come. This will support export volumes in the quarters ahead. Recent weakness in the domestic currency is also supportive, particularly for the services industries.
