Record trade performance for May

Australia's exports reached their highest monthly level in May 2007 - rising to $18.7 billion, the Australian Government Minister for Trade, Warren Truss, said today.

Exports increased across all major sectors in May 2007. Manufactured exports rose by six per cent, reaching almost $4 billion according to the ABS May 2007 International Trade in Goods and Services figures released today.

Resources exports were up one per cent to $6.2 billion, spearheaded by an eight per cent jump in coal exports. However, this was partly offset by a fall in exports of other mineral fuels, mainly due to lower petroleum exports.

Services exports increased by one per cent to $4 billion while rural exports also rose slightly.

For the 12 months to May 2007, strong export growth was recorded in goods exports to China (up 30 per cent) and Korea (up 15 per cent). Goods exports to India continued their upward surge, increasing by 31 per cent. Goods exports to the EU also remained strong, up 12 per cent.

Overall, the seasonally-adjusted trade deficit fell $109 million to $807 million in May. This occurred despite a two per cent rise in imports, due mainly to a 13 per cent increase in imports of capital goods including civil aircraft, and a higher volume of crude oil imports.

In the 11 months to May, the trade deficit was $10.4 billion, down from $14.1 billion in the corresponding period to May 2006. This continued a significant downward trend in the deficit, evident over the last few years.

In the 2006-07 financial year to May, exports are up by 11 per cent or $20 billion compared with the same period in 2005-06, with manufactured exports increasing 13 per cent, resources 11 per cent and services exports rising 10 per cent.

Mr Truss said that the strong export figures for May 2007 were achieved despite the value of the Australian dollar averaging US$0.83 – around the highest levels since October 1990.

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