Australia's July trade balance disappoints, both exports & imports decline

Australia's trade balance for July came in at 460 mn vs 875 mn exp and 856 mn last. Exports were down by -2% m/m, while imports were also down by -1% m/m. 

Trade balance key points

BALANCE ON GOODS AND SERVICES

In trend terms, the balance on goods and services was a surplus of $768m in July 2017, a decrease of $250m on the surplus in June 2017.

In seasonally adjusted terms, the balance on goods and services was a surplus of $460m in July 2017, a decrease of $428m on the surplus in June 2017.

CREDITS (EXPORTS OF GOODS AND SERVICES) 

In seasonally adjusted terms, goods and services credits fell $709m (2%) to $31,071m. Non-rural goods fell $631m (3%), non-monetary gold fell $330m (17%) and net exports of goods under merchanting fell $4m (15%). Rural goods rose $97m (2%). Services credits rose $159m (3%).

DEBITS (IMPORTS OF GOODS AND SERVICES)’

In seasonally adjusted terms, goods and services debits fell $281m (1%) to $30,611m. Consumption goods fell $139m (2%), non-monetary gold fell $92m (17%), intermediate and other merchandise goods fell $77m (1%) and capital goods fell $27m. Services debits rose $54m (1%).