The Australian Bureau of Statistics (ABS) has released trade data for the month of October, with Australia recording a seasonally-adjusted trade deficit of $529 million. The result missed analysts’ expectations, which had expected a trade deficit of $350 million.
It was the 22nd monthly trade deficit and followed the $271 million deficit recorded in September (revised down from $284 million) and the $784 million deficit recorded in August (revised up from $693 million). The next chart shows the monthly breakdown:
In seasonally adjusted terms, exports fell $26m to $27,273m, whereas imports rose $231m (1%) to $27,802m.
Australia’s biggest export commodity – iron ore (28% share) – fell by $43 million, as did Australia’s fourth biggest export – natural gas (5% share) – which fell by $113 million over the month. By contrast, Australia’s second and third biggest export commodities – coal (16% share) and gold (6% share) – rose by $230 million and $195 million respectively (see next chart).
Exports to China rose over the month (up $580 million to $9,070 million) to a new record high, with its share of total exports rising to 40% (also a record). Exports to the second biggest market – Japan (17% share) – fell by $293 million, as did exports to Korea (7% share) – Australia’s third biggest market. By contrast, exports to India (3% share) – Australia’s fourth biggest market – rose marginally (up $6 million) (see next chart).
As always, Western Australia dominated the nation’s exports. It alone accounted for 48% of Australia’s merchandise exports in October, although its exports were flat over the month. Exports from Queensland also fell by 2% (see below chart).
Again, Western Australia continues to be the state driving the nation’s trade balance, although Queensland and South Australia are also marginally in the black. By contrast, Victoria and New South Wales remain heavily in deficit:
Finally, Australia’s services trade balance worsened in October (-$105 million), driven by declining net tourism exports (-$65 million):
