Australia's goods trade surplus widened to $4.4bn in October from $3.7bn in September, slighty missing expectations for a $4.5bn surplus. Exports rose 3.4% in the month reaching a 2-year high. This outpaced a 2% rise in imports.
The trade surplus was $4.4bn in October, averaging $3.1bn across the past 3 months. The 3-month average marked a low going back to September 2018, having fallen from $4.8bn 12 months ago. The Q3 balance of payments data published earlier this week (see here) highlighted that import spending has been steadily climbing while export revenue has been subject to volatility in commodity prices. That has seen trade surpluses track a declining trajectory.
Exports lifted by 3.4% in October to $46bn, their highest level in 2 years. The non-monetary gold category continued to surge (14.2%), reflecting elevated prices on strong safe-haven demand for the commodity. The value of non-monetary gold exports is up 74% over the year. Meanwhile, non-rural goods rose 2.1% on the back of gains in iron ore (2.3%) and LNG (4.9%). Rural goods advanced 0.9%.
Import spending rose for the third month in succession with a 2% gain in October. Annual growth advanced from 11.2% to 13.6%, its fastest pace since the start of 2023. As with exports, non-monetary gold was the key movement for imports rising by 80% in the month to record highs. Consumption goods increased by 1.6%, while capital goods pulled back from recent strength - highlighted by the surge in business investment in the Q3 National Accounts (see here) - falling 5.5% in the month.
