Australia: Trade Surplus begins descent from record high – Westpac

Andrew Hanlan, analyst at Westpac, notes that Australia’s Trade Surplus has begun descent from record high with moderating commodity prices.

Key Quotes

“In August, Australia's trade surplus came in at a still elevated $5.9bn.”

“That result, which was broadly as anticipated, was a moderation from a $7.3bn outcome in July and a record high of $7.9bn in June.”

“A key driver of recent movements in the trade balance was the spike in the iron ore price associated with temporary supply disruptions from Brazil.”

“Export earnings declined by 3.4% in August, down $1.5bn, meeting our expectations.”

“Imports were a little softer than we anticipated, slipping by 0.4% (vs a forecast rise of 0.6%).”