Australia’s trade balance improves in March, likely to provide solid contribution to Q1 GDP

Australia’s trade balance improved in March to a surplus of AUD1,527 million, while February’s surplus was revised higher to AUD1,349 million. Non-monetary gold was the biggest riser for both exports and imports, but in net terms, it was a negative for the trade balance. Both exports and imports rose 1 percent in the month.

The trade balance improved in March to AUD1,527 million. Notable was the large upward revision in February’s surplus to AUD1,349 million (from an initial estimate of AUD825 million). March’s improvement was driven by the rise in total exports slightly outpacing the rise in total imports.

Total export values increased 1.4 percent (AUD488 million) in the month, after increasing 0.7 percent in February. The volatile non-monetary gold segment was the biggest riser, up 7.7 percent m/m. Manufacturing goods also increased solidly, rising 6.5 percent m/m, due to an 8.4 percent increase in machinery and a 6 percent rise in other manufacturing. Rural goods rose 3.3 percent, mainly due to a 44 percent rebound in cereals.

Further, total import values rose 0.9 percent m/m (AUD310 million), after increasing 0.1 percent in February. Non-monetary gold (48.3 percent m/m) saw the biggest increase in imports as well. Fuel imports rose strongly, rising 16.3 percent in the month, reflecting the strength in oil prices. Meanwhile, service imports fell 0.6 percent m/m as transport (-1.5 percent m/m) and travel (-1.2 percent m/m) offset a 0.9 percent rise in other services.

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