Australia: Trade Surplus jumps as exports lift and imports dip - Westpac

Andrew Hanlan, Research Analyst at Westpac, notes that the Australian trade surplus widened to $3.0bn in September, well above expectations (market median and Westpac $1.7bn).

Key Quotes

“History was revised, as often occurs in the final month of the quarter, ahead of the balance of payments.”

“August was upgraded to a surplus of $2.3bn, previously reported as a surplus of $1.6bn.”

“In September, the key surprise was a drop in imports.”

“Imports fell by 1.1%, led lower by a pull-back in capital goods. We had expected a modest rise in imports on higher prices associated with the lower Australian dollar.”

“Exports advanced by 0.8% in the month, broadly as anticipated. Gains were in metal ores and fuels, benefitting from higher global energy prices and higher iron ore prices.”

“Turning the focus to quarterly developments, the trade surplus widened to $6.4bn in Q3, up from $4.2bn in Q2, a $2.2bn improvement (note, these estimates are on a balance of payments basis).”