SUBSCRIBE TO OUR FREE NEWSLETTER
PUBLISHED |

Australian trade deficit widens as exports decline

Australian trade deficit widens as exports decline article image

Australia’s trade deficit widened in June, as imports rose and exports fell.

The Australian trade deficit stood at A$3.2 billion in June, compared to $2.2 billion in May, the Australian Bureau of Statistics said in a recent report.

The deficit was much wider than analysts' expectations of a deficit of A$2 billion.

The value of exports declined 1% in June following a 1% gain the previous month. Imports rose 2% following a similar increase the previous month.

A decline in the value of resource exports (down 2.7 percent m/m) was the main factor behind the deterioration in the trade balance in June.

Non-monetary gold exports (which are very volatile) were the prime drivers, dropping 15.5 percent m/m.

The 2 percent rise in imports largely reflected stronger imports of consumption goods (+7.4 percent m/m).

Excluding volatile items total goods imports jumped 3.6 percent m/m. The rise in imports may be good news for the domestic economy as a whole as it may reflect higher households’ appetite for consumption.

According to the ABS, the preliminary Q2 trade deficit was $7.98 billion, slightly less than the $8.66 billion deficit in the previous quarter.

Tags

Leave A Comment

Spinning icon Saving your comment, please wait...
Spinning icon Saving your comment, please wait...