Australia June Trade Surplus Largest in 13 Months
Australia’s trade surplus widens sharply 158 percent to AUD 1.87 billion in June of 2018 from a downwardly revised AUD 0.73 billion in the prior month and far above market expectations of a AUD 0.9 billion surplus. It is the largest trade surplus since May last year, as exports rose to an all-time high while imports declined.
Exports increased by 3 percent month-on-month to an all-time high of AUD 36.44 billion in June. Sales of non-rural goods rose by 2 percent to AUD 22.92 billion, mainly due to metal ores and minerals (1 percent); other mineral fuels (1 percent); other manufactures (6 percent); and transport equipment (16 percent). In addition, exports of non-monetary gold increased by 6 percent to AUD 1.98 billion while those of rural goods went up 5 percent to AUD 4.16 billion, mainly due to meat and meat preparations (2 percent), cereal grains and cereal preparations (10 percent) and other rural products (6 percent). Exports of services went up by 1 percent to AUD 7.39 billion, due to a rise in travel sales (2 percent) while other services were almost unchanged.
Imports fell 1 percent to AUD 34.57 billion in June. Imports of intermediate and other merchandise goods went down by 4 percent to AUD 10.74 billion, mainly dragged down by fuels and lubricants (-11 percent); processed industrial supplies (-2 percent); parts for transport equipment (-5 percent); other parts for capital goods (-1 percent). Also, purchases of non-monetary gold tumbled 15 percent to AUD 0.64 billion.
Meantime, purchases of consumption goods were almost unchanged at AUD 8.96 billion, mostly due to a fall in non-industrial transport equipment (-3 percent) was offset by a rise in both textiles, clothing and footwear (2 percent); food and beverages (2 percent), and household electrical items (1 percent). Imports of services were almost unchanged at AUD 7.62 billion, as an increase in purchases of other services (1 percent) was offset by a drop in transport ( -3 percent); travel (-1 percent). By contrast, inbound shipments of capital goods increased by 5 percent to AUD 6.61 billion, led by industrial transport equipment n.e.s (9 percent); civil aircraft and confidentialised items (13 percent).capital goods n.e.s (14 percent), and ADP equipment (6 percent).
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