The Australian Bureau of Statistics (ABS) has released trade data for the month of July, with Australia recording a seasonally-adjusted trade deficit of $765 million. The result disappointed analysts’ expectations, which had expected a trade surplus of $100 million.
It was the first monthly trade deficit in three months and followed the $243 million surplus recorded in June (revised down from $602 million) and the $184 million surplus recorded in May (revised down from $507 million). The next chart shows the monthly breakdown:
In seasonally adjusted terms, exports rose $54m to $26,202m. However, the increase in exports was more than offset by a $1,062m (4%) rise in imports to $26,967m, mostly on the back of Intermediate and other merchandise goods .
Australia’s biggest export commodity – iron ore (25% share) – rose by $290 million in July, as did Australia’s third biggest export – natural gas (7% share) – which rose by $277 million over the month. By contrast, Australia’s second and fourthe biggest export commodities – coal (15% share) and gold (4% share) – fell by $208 million and $234 million respectively (see next chart).
Exports to China rose marginally over the month (up $31 million to $7,751 million), with its share of total exports remaining constant at 35%. Exports to the second and third biggest markets – Japan (19% share) and Korea (8% share) – also rose by $68 million and $145 million respectively, whereas exports to India – the fourth biggest market (3% share) – fell by $159 million in July (see next chart).
As always, Western Australia dominated the nation’s exports. It alone accounted for 45% of Australia’s merchandise exports in July, with its exports also rising by 2% over the month. Exports from Queensland also rose by 3%, and have recovered after falling sharply in January (see below chart).
Again, Western Australia continues to be the state driving the nation’s trade surplus, although Queensland and South Australia are also marginally in the black. By contrast, Victoria and New South Wales remain heavily in deficit:
Finally, Australia’s services trade balance deteriorated marginally in July (-$47 million), driven by lower tourism net exports (see below chart).
