Australia’s trade balance narrows more than expected in May amid weak exports By Investing.com
Investing.com– Australia’s trade balance fell more than expected in May, as exports remained weak, while some firmness in domestic demand saw imports grow slightly.
fell to just over A$5.77 billion, data from the Australian Bureau of Statistics showed on Thursday. The reading was weaker than expected from the A$6.2 billion surplus, and down from the A$6.0.3 billion surplus achieved in April, which was revised lower on Thursday.
grew 3.9% month-on-month in May after falling sharply in the previous month. But exports of Australia’s key commodities, particularly steel and other metals, remained weak as demand from Chinese importers remained sluggish.
Trade surplus was also driven by strong momentum, growing 3.9% month-on-month after falling 7% the previous month.
Imports of consumer goods and automobiles contributed significantly to this figure, as consumer spending increased towards the end of the fiscal year.
But Australia has been experiencing moderate export demand due to weak economic conditions in its major export destinations, particularly Asia and Europe. This trend has kept the growth of exports down significantly, and has once again weighed on local producers.
