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Investing.com-- Australia’s trade balance shrank more than expected in August, hit chiefly by a sharp fall in exports as overseas demand for the country’s key commodities fell short.
Growth in imports also weighed on the trade balance, amid some resilience in local demand.
Australia’s trade balance slid to a A$1.83 billion surplus ($1.21 billion), data from the Australian Bureau of Statistics showed on Thursday. The print was weaker than expectations for a surplus of A$6.13 billion.
The weak trade balance was driven chiefly by a 7.8% month-on-month slide in exports, with coal, mineral fuels and metal exports all declining in August.
The export slowdown came amid cooling commodity demand in Australia’s top markets in Asia and Europe. Weak business activity in China was a main point of pressure, as commodity demand in the country weakened.
Australian imports grew 3.2% m-o-m, driven chiefly by stronger imports of consumer goods. The print was driven largely by some resilience in Australian private spending, although sticky inflation and cooling economic growth could offset this trend.