Australian Trade Surplus Narrows as Coal Exports Fall

Australia’s trade surplus narrowed in September as exports of coal and iron ore fell, and imports of machinery and industrial equipment increased., Bloomberg 11/4/2010 12:01:50 PM

The A$1.76 billion surplus was lower than the revised A$2.45 billion surplus in August, the Bureau of Statistics said in a report in Sydney.

The sixth straight surplus may reflect an economy the central bank forecasts will accelerate as companies such as Chevron Corp. expand projects to meet demand from China for energy and raw materials. The central bank boosted interest rates by a quarter percentage point to 4.75 percent this week and said the economy is near an expansionary shock” from trade, helping drive the local currency to parity with the U.S. dollar.

Total exports fell 2 percent to A$24.2 billion in September, today’s report showed. Imports increased 1 percent to A$22.4 billion.

Increased demand for skilled workers at projects such as Chevron’s A$43 billion Gorgon liquefied natural gas project, under construction in Western Australia, threatens to stoke wage growth and inflation.

Australian Trade Surplus Narrows as Coal Exports Fall