Trade surplus narrower than expected

Australia has posted another near-record trade surplus, although the figure was slightly narrower than expected.

The value of exports fell 3 per cent in August versus July.

Australia posted another near-record trade surplus in August, helping to support an otherwise soft economy, though the figure was slightly narrower than expected.

The seasonally adjusted trade surplus was $5.93 billion in August compared with a surplus of $7.25 billion in July, the Australian Bureau of Statistics said.

August’s figure was slightly narrower than analysts’ expectations of a $6 billion surplus.

The value of exports fell 3 per cent in August versus July, while the value of imports was unchanged, the ABS said.

The weakness in exports was led by a 10 per cent fall in the value of iron ore exports, while the value of coal exports fell by 4 per cent in August compared to July.

A weaker Australian dollar, a soaring iron ore price and expanding volumes of liquefied natural gas exports to Asia have supported big trade surpluses this year.

The strength in international trade in 2019 helped Australia post its first current-account surplus in 44 years in the second quarter. The improvement helped offset weakness in other areas of the economy, which is growing at its slowest pace in a decade.

The Reserve Bank of Australia has cut interest rates three times so far in 2019, with economists expecting it to go further before the end of the year.

Dow Jones Newswires