Australia: Another record high for trade surplus – Westpac

Andrew Hanlan, Senior Economist, Westpac offers his first impression of the Australian Trade Balance data released earlier in the Asian session this Thursday.

Key quotes

“The surplus climbed to $17.7bn in June led by an export surge.”

“The June outcome exceeded expectations, Westpac $14.6bn and market median $14.0bn.”

“Note that the May figures was revised lower, to $15.0bn from $16.0bn, - still a new record high ahead of the June result.”

“Export earnings surged during the June quarter, reflecting a combination of higher prices and a welcome lift in volumes, off a relatively subdued base.”

“Exports grew by 5.4% in April, then rose 8.9% in May, followed by a 5.1% lift in June. We had anticipated that exports would consolidate in June.

“On the import side, the gain of 0.7% fell short of our expectations, a forecast 3.2%.” 

“Weakness was centred on a pull-back in civil aircraft, as well as softness in car imports which continue to be disrupted by supply chain issues.”