Trade balance continues to bounce lower in Australia

Australia’s goods trade surplus decreased by $742 million to $2.63 billion in January. Exports slipped 0.9% m/m while imports rose 0.8% m/m, driven by a further lift in computing imports, largely for data centres.

The pick-up in the Australian dollar since the beginning of the year and continued strong demand for investment in data centres will provide a boost to import growth through 2026. Even so, the recent rise in inflation and interest rate hikes will be weighing on households’ disposable income, which will keep overall import growth in check in the coming months.

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