Australia: Surge in current account surplus – ANZ

ANZ analysts note that Australia’s current account was again in surplus in Q3, improving upon the revised AUD4.7bn (previously AUD5.9bn) surplus in Q2.

Key Quotes

“The further rise in the surplus reflects both the trade balance rising (from AUD19.3bn to AUD21.1bn) and the income deficit declining (from AUD14.6 to AUD13bn).”

“Export volumes rose 0.7% q/q helped by an increase in resources which were up 1.4%. Falls in coal exports were offset by a rise in other minerals, which includes LNG, which was up 2.9% q/q and iron ore which rose 1.6% q/q. Rural goods declined again this quarter, down 2.8% q/q, with weakness seen across most rural categories. Non-monetary gold surged 30.8% q/q in Q3, following the 12% decline in Q2.”

“Import volumes fell 0.2% q/q, which reflects mixed results across the categories. Intermediate goods rose 2.1% q/q, whilst capital goods fell 5.6% q/q. Consumption goods were, however, down a touch, 0.5% q/q.”

“The terms of trade rose just 0.4% q/q, reflecting a rise in both export prices (+1.4%) and import prices (1.0%).”