Balance of Payments Australia

Trade surplus doubles to $1.7b while building approvals bounce back in September

 www.first2move.com.au

Australia's economic fortunes have received an unexpected boost with stronger than expected trade and building approvals in September.

Key points:

Trade surplus doubles on export growth and flat imports

Building approvals gain ground again after sliding over the past year

Permits for apartments in Sydney +16pc and +234pc in Perth in Septemeber

In seasonally adjusted terms, the trade surplus doubled to $1.74 billion over the month, much higher than $1.1 billion the market had factored in.

The strong result was export driven with exports up 3 per cent to $33 billion, while imports remained flat at $31.2 billion.

Iron ore was the standout commodity export with the value of shipments up 8 per cent over the month.

The value of lump iron ore rose 18 per cent on higher volumes and prices, while the value of shipments to China rose by almost 30 per cent ahead of the seasonal slowdown of steel production over winter.

Coal exports were largely flat, although coking coal — used in steel production — edged up.

Surprisingly, the value of LNG exports fell 20 per cent over the month on a sharp decline in volumes.

Exports of rural goods rose 5 per cent, thanks to a strong demand for meat (+17 per cent) and wool (+18 per cent), which more than offset a 65 per cent drop in the value of wheat and cereal exports.

(Australian Broadcasting Corporation )