Australia's trade deficit widens in June, building approvals fall

Australia's trade balance for June came in at -3.195 bn vs -2bn exp and -2.218bn last. Exports fell 1% m/m, while imports were up 2% m/m. Meanwhile, building approvals for June fell by 2.9% m/m vs +0.8% exp and -5.2% last,  with the yearly reading at -5.98% vs-2.4% exp and -9.1% last.

Trade balance key points

BALANCE ON GOODS AND SERVICES

• In trend terms, the balance on goods and services was a deficit of $2,359m in June 2016, a decrease of $14m (1%) on the deficit in May 2016.
• In seasonally adjusted terms, the balance on goods and services was a deficit of $3,195m in June 2016, an increase of $777m (32%) on the deficit in May 2016.

CREDITS (EXPORTS OF GOODS AND SERVICES) 

• In seasonally adjusted terms, goods and services credits fell $213m (1%) to $25,803m. Non-monetary gold fell $270m (15%). Rural goods rose $35m (1%) andnon-rural goods rose $20m. Net exports of goods under merchanting remained steady at $28m. Services credits rose $2m.

DEBITS (IMPORTS OF GOODS AND SERVICES) 

• In seasonally adjusted terms, goods and services debits rose $564 (2%) to $28,998m. Consumption goods rose $588m (7%) and capital goods rose $147m (3%). Intermediate and other merchandise goods fell $92m (1%) and non-monetary gold fell $57m (10%). Services debits fell $21m.

2015-16 SITUATION 

• In original terms, the balance on goods and services for 2015-16 was a deficit of $36.9b, a rise of $13.9b (61%) on the deficit of $23.0b recorded in 2014-15, resulting from a $6.8b (2%) decrease in goods and services credits and a $7.1b (2%) increase in goods and services debits.

Building approvals key points

OTAL DWELLING UNITS

• The trend estimate for total dwellings approved fell 0.9% in June and has fallen for two months.
• The seasonally adjusted estimate for total dwellings approved fell 2.9% in June and has fallen for two months.

PRIVATE SECTOR HOUSES

• The trend estimate for private sector houses approved fell 0.6% in June and has fallen for four months.
• The seasonally adjusted estimate for private sector houses fell 2.3% in June following a rise of 0.3% in the previous month.

PRIVATE SECTOR DWELLINGS EXCLUDING HOUSES

• The trend estimate for private sector dwellings excluding houses fell 1.1% in June and has fallen for two months.
• The seasonally adjusted estimate for private sector dwellings excluding houses fell 2.4% in June and has fallen for two months.

VALUE OF BUILDING APPROVED

• The trend estimate of the value of total building approved rose 1.2% in June and has risen for six months. The value of residential building rose 0.1% and has risen for seven months. The value of non-residential building rose 3.7% and has risen for four months.
• The seasonally adjusted estimate of the value of total building approved rose 5.3% in June following a fall of 10.7% in the previous month. The value of residential building fell 1.5% and has fallen for two months. The value of non-residential building rose 20.8% following a fall of 18.3% in the previous month.