SYDNEY – Australia’s surplus on trade goods surged to an eight-month high in November as coal exports picked up and imports of cars slid after a run of strong months, data showed on Thursday.
The Australian Bureau of Statistics reported the balance on goods jumped to A$11.4 billion ($7.64 billion), from A$7.7 billion in October, far above market forecasts of A$7.5 billion.
Exports rose 1.7 percent thanks largely to gains in coal and iron ore. Imports dived 7.9 percent as automobiles sank by almost A$1 billion and oil prices eased.
The statistics bureau has ceased reporting monthly data for service exports and imports, which will now be issued quarterly.
Australia’s current account slid into deficit in the September quarter as prices for some commodity exports fell and locals spent more money abroad, leaving trade as a drag on the economy overall.
Other data from the Australian Bureau of Statistics on Tuesday showed government spending was surprisingly strong in the quarter, helping offset the drag.
Australia’s current account fell to a deficit of A$158 million ($104.49 million) in the third quarter. That was down from a surplus of A$7.8 billion in the second quarter and well under forecasts of a A$3.1 billion surplus.
Exports were pulled down by falling prices for coal and liquefied natural gas, while imports of oil climbed and more Australians travelled abroad.
The ABS said net exports would subtract 0.6 percentage points from gross domestic product (GDP), compared with forecasts of 0.2 percentage points.
That was balanced in part by a 1 percent rise in government spending, which added 0.3 percentage point to GDP. In addition, a sharp rise in mining inventories in the quarter looked to have contributed around 0.9 percentage point to growth, suggesting some upside risk to GDP.
The resilience of domestic demand is a major reason the Reserve Bank of Australia (RBA) raised interest rates to a 12-year high of 4.35 percent in November, ending four months of steady policy.
Australia’s economy barely grew in the third quarter as exports flagged and households – reeling from a surge in mortgage payments – were reluctant to spend, suggesting rate hikes were working to restrain demand.
Marking an eighth straight quarter of growth, albeit its slowest in a year, real gross domestic product (GDP) inched 0.2 percent higher in July-September from the previous quarter. That was short of forecasts of 0.4 percent and a result that bolsters the case for the Reserve Bank of Australia to no longer need to tighten.
Annual GDP growth stood at 2.1 percent, little changed from the previous quarter, the data from the Australian Bureau of Statistics showed.
“Australia’s economy hit the wall in the September quarter,” said Andrew Hanlan, an economist at Westpac, adding it was surprising to see just how weak consumer spending was during the quarter.
