Australia's trade surplus of goods experienced a significant increase of AU$1.41 billion in November 2024, attributed to an uplift in export values. The seasonally adjusted balance on goods surged to AU$7.08 billion, exhibiting a substantial rise from AU$5.67 billion recorded in October, as reported by the Australian Bureau of Statistics. The rise in exports can be credited to a notable increase of 4.8% month-on-month, predominantly driven by robust growth in rural exports, which soared by 18%.
Additionally, non-rural goods exports, comprising Australia’s key resource exports such as metal ores, coal, and natural gas, also displayed a healthy increase of 2.1%. Conversely, import levels saw a minor uptick of 1.7%. Mantas Vanagas, a senior economist at Westpac, characterized this as the first positive reading observed in six months. Among Australia's international trade relationships, the surplus with China showed slight improvement compared to the previous month, when it reached its lowest point in eight years.
"Overall, following a more stable period, the latest improvement presents a somewhat more optimistic view for Australia’s goods trade flows," Vanagas noted, adding that the future of Australia’s trade dynamics heavily relies on the demand trajectory from significant partners like China, the United States, and others, alongside potential tensions impacting trade flows, especially with the anticipated introduction of new import tariffs by the US..