August figures confirm solid export growth trend

Exports of goods and services totalling $18 billion in August confirmed this year’s solid growth trend in Australian exports, the Minister for Trade, Warren Truss, said today.

“Exports for August were one per cent, or $244 million, higher than in July, and the second highest monthly level of exports on record,” Mr Truss said.

“This strong export growth against a small rise in imports brought the trade deficit down by $122 million to $208 million for August.

“This means that the monthly trade deficit has continued to trend solidly down to below $500 million,” Mr Truss said.

Exports were up in most categories: manufactured exports rose by 2 per cent or $69 million; rural goods exports also rose by 2 per cent or $47 million; and services exports were up slightly by $15 million. Exports of other goods rose by 6 per cent or $56 million, mainly on the back of a 13 per cent rise in non-monetary gold exports.

Resources exports were broadly unchanged, with exports of $6.1 billion being $7 million less than the July figure.

“A feature of the increase in manufactured exports was a particularly strong performance by Australia’s automotive exporters, with a 37 percent increase in road vehicle exports for the month,” Mr Truss said.

“In the rural sector, cereal exports rose by 14 percent, offset by a similar fall in wool and sheepskin exports.”

Mr Truss also noted that the August figures reflect some substantial revisions to services statistics by the Australian Bureau of Statistics.

“These revisions indicate that Australia’s export performance last year was somewhat better than had been reported, especially in terms of education exports, which is now close to being a $10 billion export earner,” he said.

The ABS revisions put the trade deficit for 2005-06 at $14.5 billion ($2 billion less than previously reported), with a surplus of $1.2 billion for services. The July trade deficit was also revised down from $588 million to $320 million.

“The efforts of our exporters are supported by an Australian Government that continues to pursue wider access for our products and services across major international markets. I note that in the 12 months to August merchandise exports growth was particularly strong to Europe (up 42 percent) and North Asia (up 24 per cent),” Mr Truss said.

Media Inquiries: Minister Truss' office 02 6277 7420 - Departmental Media Liaison 02 6261 1555