Australia's June trade balance disappoints, drop in exports weigh

Australia's June trade balance came at AUD 856 million vs AUD 1.8 billion expected and 2.471 billion prior, with exports coming at -1% vs 9% prior, while imports saw a 2% increase vs 1% prior. 

Key Points

BALANCE ON GOODS AND SERVICES: In trend terms, the balance on goods and services was a surplus of $1,166m in June 2017, a decrease of $409m on the surplus in May 2017. In seasonally adjusted terms, the balance on goods and services was a surplus of $856m in June 2017, a decrease of $1,168m on the surplus in May 2017.

CREDITS (EXPORTS OF GOODS AND SERVICES): In seasonally adjusted terms, goods and services credits fell $439m (1%) to $31,779m. Non-rural goods fell $740m (4%) and net exports of goods under merchanting fell $1m (4%). Non-monetary gold rose $406m (27%) and rural goods rose $26m (1%). Services credits fell $129m (2%).

DEBITS (IMPORTS OF GOODS AND SERVICES): In seasonally adjusted terms, goods and services debits rose $730m (2%) to $30,923m. Capital goods rose $733m (13%), non-monetary gold rose $238m (76%) and consumption goods rose $194m (2%). Intermediate and other merchandise goods fell $406m (4%). Services debits fell $30m.

2016-17 SITUATION: In original terms, the balance on goods and services for 2016-17 was a surplus of $12.4b, a turnaround of $49.1b on the deficit of $36.7b recorded in 2015-16, resulting from a $53.2b (17%) increase in goods and services credits and a $4.1b (1%) increase in goods and services debits.