Australia's goods trade surplus widened to $7.1bn in October from a downwardly revised $6.2bn in September. This was below the 3-month average ($7.7bn), which has retraced to lows since early 2021. Exports lifted modestly (0.4%m/m) but are down nearly 18% on their mid 2022 peak as commodity prices have unwound. Import spending remains around record highs despite declining by 1.9% in the month.
After narrowing to a 2½-year low in September ($6.2bn), the goods trade surplus widened to $7.1bn in October. This is half the level it was a year ago ($14.2bn), with export income falling 11.9% over the period and imports rising 2.4%. On a 3-month average basis, the surplus was $7.7bn, back in line with early 2021 levels.
In October, exports consolidated (0.4%) coming in at $45.5bn, which followed a 1.8% fall in the prior month. Rises in non-rural goods (0.4%) and the volatile non-monetary gold (5.3%) overcame a decline in rural goods (-1.8%). The non-rural goods category was boosted by a lift from iron ore (2.3%) to $16.3bn, the level up by 17.3% over the year in contrast to the large falls seen in coal (-37.4%) and LNG exports (-41.5%).
Spending on imports fell 1.9% in October to $38.4bn. This was after imports posted their sharpest rise in 19 months in September (8%). An 11.2% fall in capital goods was the main driver, a continuation of the pattern of volatile movements seen in recent months.
Consumption goods were soft (-0.5%) on the back of falls in household goods and electrical items. These declines were partially offset by 1.4% rise in intermediate goods as the value of fuel imports saw a 10.3% rise, rebounding to $6.2bn to be up 39.5% on their recent low in July.
