Australia's goods trade balance fell from $6.6bn to $1.8bn in August, the lowest surplus posted since June 2018 and vastly below the $6.1bn figure expected. Exports were crunched by 7.8%, their sharpest fall in 3 years, on a pullback in non-monetary gold from record highs in July. Spending on imports meanwhile lifted by 3.2% in the latest month, rebounding from weakness through June and July.
Australia posted its 92nd consecutive goods trade surplus in August, though at $1.8bn this was the smallest surplus since the early stages of this run dating back to the start of 2018. This was a sharp narrowing from last month when the surplus surged to $6.6bn, its highest since February 2024. Surpluses have swung around in recent months, a period of extreme volatility in global trade due to US administration's new tariff regime and subsequent delays around its implementation. Smoothing the volatility, the trade surplus averaged $4.3bn over the past 3 months, and it has been around this level through most of the year.
Exports fell by 7.8% for the month in August to $41.9bn ($AUD terms), down 2.5% on 12 months ago. This was the largest month-on-month decline for exports since July 2022. Non-monetary gold exports nearly halved to $3.3bn in August (-47.2%), after accelerating to a record high in July ($6.2bn). While a notoriously volatile category, this is a surprising movement given the elevated levels the precious metal is trading at. Non-rural goods exports fell 2.8% to $31.8bn, driven by weakness in coal (-4.8%), LNG (-8.4%) and metals (-8%). Iron ore exports (0.2%) held their own. Going against the trend, rural goods lifted by 3.1% to $6.6bn; these exports have surged in value over the past year (22.1%) amid strong offshore demand for Australian produce.
Spending on imports increased by 3.2% to A$40bn in August, a new record high that stands 7.8% above its level from 12 months prior. All categories rose in the latest month. Consumption goods increased by 5.8% ($12.7bn), their strongest lift since December 2023 - albeit after sizeable falls in June (-5.4%) and July (-3.2%). Underlying drivers included vehicles (7.1%) and clothing and footwear (5.7%). A 2% rise came through in intermediate goods ($16bn), while capital goods advanced by 1.8% to $9.9bn.
