Australia Macro Service > Australia Data Insights

Trade surplus tumbles in October

Australia’s trade surplus tumbled to just A$105m in October, led by a 2.8% m/m drop in exports. The fall in exports was broad-based, with goods decreasing by 3.1% over the month and services by 1.6%. Non-rural commodities exports were the most significant drag, falling 5.5%, weighed down by metal ores and minerals. In contrast imports rose 1.9% on the month.

Moving into the last months of 2017, the trade surplus is expected to recover, with falls in key commodity prices more than offset by increases in natural gas and services exports. Import growth is expected to remain subdued, held back by relatively weak domestic demand and subdued global inflation, although upside risk exists with the introduction of large international retailers in the Australian market.

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