Data Snapshot: Trade Balance - Trade Rivers Still Flowing

Good afternoon,

 

• Australia posted an $827 million surplus in May, the fifth consecutive month of surplus. It however, followed a sizeable downward revision of $505 million, taking April’s trade surplus to $472 million. 
• Exports rose a solid 4.0% in May. It was the strongest increase in four months, and followed a 1.8% decline in April. The strength in exports reflected firm global demand was boosted by a large lift in commodity exports.  In particular, high oil and LNG prices boosted mineral fuel exports. The weakness in the Australian dollar over recent months is also providing support.
• Imports were also strong, rising 3.0% in May. On a year ago, imports rose 12.6% which was strongest annual pace in five months. In the month, a 5.6% increase in consumption good imports drove the increase, providing a positive signal for the consumer spending outlook
• The recent strength in imports is also an encouraging sign for domestic demand and economic growth. Additionally, the positive momentum in the global economy is providing support to growth in exports. Forecasts for global growth remain solid for this year. However, an increasing downside risk is the ongoing uncertainty with regard to trade policies, which could potentially dent the global recovery.

 

Please see the attached report for more information.

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