Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Australia trade balance unexpectedly grows in Nov as imports decline

Published 12/01/2023, 01:59
Updated 12/01/2023, 01:59
© Reuters.

© Reuters.

By Ambar Warrick 

Investing.com-- Australia’s trade surplus unexpectedly grew in November, data showed on Thursday, as weakening local demand saw imports log a sustained decline, while the country’s massive commodity exports remained largely steady. 

The country’s trade balance grew to A$13.201 billion (A$1= $0.6919) in November, beating expectations for a reading of A$10.50 billion, and also more than last month’s reading of A$12.22 billion. The figure was at its highest level since a record high hit in June.

Imports into Australia continued to decline, falling 1% in November from the prior month. Pressure on consumer spending saw the imports of leisure goods fall the most during the month, while weakening trends in business activity also severely dented capital good shipments. 

The Australian economy has come under pressure in recent months from high inflation and rising interest rates, which have in turn weighed heavily on consumer and business sentiment. The antipodean economy grew at a slower-than-expected pace in the third quarter, as a post-COVID boom appeared to be running out of steam. 

But some facets of the economy, especially the export-oriented businesses, remained steady despite local economic headwinds. Australia’s exports were largely flat in November from the prior month.

A jump in the shipments of metal ores and minerals- the country’s biggest export- was largely offset by weaker fuel exports, as global oil and gas prices eased during the month. Still, the data indicates that offshore demand for the country’s chief exports remained strong despite economic headwinds across the globe.

Australia’s commodity exports are broadly expected to benefit from a reopening in China, the country’s biggest trading partner. A bulk of Australia’s metal ore and coal exports are sent to China.

China reopened its international borders this week after nearly three years of lockdowns, brewing optimism over an eventual economic recovery in the country from a COVID-induced slump. 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.