Australia's trade balance moved back into surplus in April ($1.8bn), after slipping into deficit for the first time in 8 years in March (-$1bn). Exports accelerated at their fastest pace (7.2%) since mid-2022, driven by the major commodities. That far outpaced a modest lift in imports (0.8%). Higher oil prices amid the blockade in the Strait of Hormuz saw the cost of fuel imports surge, but the capex boom in tech-related equipment eased.
The trade balance swung from a small deficit in March (-$1bn) to a small surplus in April ($1.8bn). Across the past 3 months, the trade surplus averaged $1.9bn - its lowest since July 2018 - continuing the downward trend of the past few years.
Total exports rose by 7.2% - their fastest increase since June 2022 - to come in at $47.2bn. That saw annual growth rise to 10% from -1.9% in the year to March. The major driver of this strength came from an 11% acceleration in non-rural goods exports ($33.6bn). This reflected strong gains across the key commodities: iron ore 18.5%, coal 15.2% and LNG 2%. Details from the relase indicated these gains were linked to a step up in export volumes, rebounding weather-related disruptions, as highlighted in yesterday's National Accounts (see here).
Imports were held to a 0.8% rise in April, in at $45.4bn for a 12-month increase of 18%. Higher oil prices due to the Middle East conflict led to fuel imports surging by a further 41.4% in April after an even larger increase in March (53.6%). Over these past two months, the cost of fuel imports has more than doubled, up 117.1%.
Capital goods pulled back (-16.4%) after rising strongly in March (29%). The main driver was a slowdown in ADP equipment, falling 41.7% following a more than 170% surge to facilitate the data centre build-out last month.
