Australian Trade Balance in Deficit in May

Australia’s trade deficit shrank in May as the weaker Australian dollar boosted demand for exports and capped imports.  The deficit came in at A$2.75bn from a revised A$4.14bn in April. Economists had forecast a deficit of A$2.23bn.

What’s notable about the April deficit is that the original estimate of A$3.89bn was a record in nominal terms. The revision now makes that deficit even deeper, which means May’s number may be a bit of a relief even though it was worse than expectations.  Exports grew a seasonally adjusted 1 per cent to A$25.53bn from A$25.32bn a month earlier. Rural goods exports rose by 4 per cent to $3.9bn, the best rate of growth among export goods.

With the buying power of the Aussie dollar down 7 per cent between January and late May, imports shrank 4 per cent to A$28.28bn in June from A$29.46bn a month before, owing to an 18 per cent, or A$1.07bn drop in the capital goods category.

Financial Times

Stuart McPhee
Stuart McPhee
Australian private trader for nearly 20 years, author, trading coach, licensed adviser and regular speaker at major trading events all around the world. Graduate of RMC Duntroon and former Australian Army Officer.