Australia: Trade surplus widens as imports pull-back - Westpac

Andrew Hanlan, analyst at Westpac, suggests that the Australia’s December outcome of $3.7bn trade surplus was an upside surprise, coming in well above expectations (market median $2.2bn and Westpac $2.8bn).

Key Quotes

“Imports fell by 5.7% in the month, with falls broadly based across the goods segments.”

“Exports disappointed, down 1.6%, with the $0.6bn decline more than explained by a plunge in the notoriously volatile gold shipments, contracting by $1.0bn.”

“For the December quarter, the surplus came in at $8.5bn, a $2.7bn improvement on a $5.8bn surplus for the September quarter.”

“Key to the improved trade position was an increase in the terms of trade, up by around 2.5% we estimate, rising on higher export prices for key commodities.”