Australia's trade surplus widened to $11.8bn in May, partially rebounding from a sharp narrowing in April. Export earnings advanced and remained at elevated levels, while imports are holding up amid headwinds to household spending from rising interest rates and cost-of-living pressures.
International Trade — May | By the numbers
- Australia's trade surplus widened by $1.3bn to $11.8bn in May, higher than the expected figure ($10.9bn). April's trade surplus was revised to $10.5bn from $11.2bn.
- A 4.4% rise saw exports come in at $57.8bn, rebounding partially from a 6.4% fall in April. Export earnings are 1.8% lower than 12 months ago.
- Imports advanced 2.5% to $46bn, up for the third month in succession and are 3.4% higher over the year.
International Trade — May | The details
The value of Australia's exports lifted by 4.4% in May, outpacing a 2.5% rise in import spending. That saw the nation's trade surplus increase from $10.5bn in April to $11.8bn in May. This partially reverses a sharp ($4.5bn) narrowing in the trade surplus in April ($10.5bn). As a result, the trade surplus remains in elevated territory, though May's figure was slightly below the 12-month average ($12.3bn).
The balance on goods trade was in surplus to the order of $11.7bn in May, while services trade in exports and imports remained in balance ($0.05bn).
Exports earnings increased on the back of a 5% rise in goods trade, with the services component also advancing (1.4%). The rise in goods exports was supported by rural (5%) and non-rural goods (1.9%) as well as volatile non-monetary gold (77.1%). Increases in some of the major resources (coal 1.6%, other mineral fuels 3.4%, and metals 15.8%) supported non-rural goods (though iron ore fell by 1.9%). Rural goods have come off record highs but remain elevated.
A 3.1% rise in goods spending lifted imports to a 2.5% rise in May; services imports were flat. Consumption goods (7.7%) were the key factor as new vehicle imports surged to a new record high rising through $4bn in the month. Intermediate goods were modestly higher in May (0.5%), while capital goods declined (-2.5%).
International Trade — May | Insights
The trade surplus remained elevated in May, with exports supported by the major resources. Imports are holding up despite headwinds to domestic demand, highlighted by record spending on vehicles.
