ANALYSIS AND COMMENTS


BALANCE ON GOODS AND SERVICES

In trend terms, the balance on goods and services was a surplus of $1,716m in August 2018, an increase of $121m on the surplus in July 2018.

In seasonally adjusted terms, the balance on goods and services was a surplus of $1,604m in August 2018, an increase of $56m on the surplus in July 2018.

GOODS AND SERVICES SUMMARY(a), Seasonally Adjusted and Trend
							Change in:
				Jun 2018	Jul 2018	Aug 2018	Aug 2018	Aug 2018
				$m	$m	$m	$m	%
Seasonally Adjusted
BALANCE on goods and services				2 119	1 548	1 604	56	4
CREDITS
	Total goods and services			36 701	36 377	36 562	185	1
		Total goods		29 083	28 811	28 950	139	-
			Rural goods(b)	4 133	4 067	4 201	134	3
			Non-rural goods(b)	22 970	22 931	22 709	-222	-1
			Net exports of goods under merchanting(c)	5	18	18	-	-
			Non-monetary gold(c)	1 975	1 795	2 023	228	13
		Total services		7 617	7 566	7 611	45	1
DEBITS
	Total goods and services			-34 581	-34 828	-34 958	130	-
		Total goods		-26 664	-26 817	-26 864	47	-
			Consumption goods	-8 744	-8 611	-8 643	32	-
			Capital goods	-6 604	-6 198	-6 767	569	9
			Intermediate and other merchandise goods	-10 677	-11 301	-11 037	-264	-2
			Non-monetary gold(c)	-638	-707	-418	-289	-41
		Total services		-7 918	-8 011	-8 094	83	1
Trend(d)
BALANCE on goods and services				1 498	1 595	1 716	121	8
CREDITS
	Total goods and services			36 047	36 382	36 664	282	1
		Total goods		28 521	28 797	29 037	240	1
			Rural goods(b)	4 093	4 137	4 149	12	-
			Non-rural goods(b)	22 568	22 761	22 923	162	1
			Net exports of goods under merchanting	10	12	15	3	25
			Non-monetary gold	1 850	1 886	1 951	65	3
		Total services		7 526	7 585	7 627	42	1
DEBITS
	Total goods and services			-34 549	-34 787	-34 948	161	-
		Total goods		-26 628	-26 809	-26 928	119	-
			Consumption goods	-8 641	-8 654	-8 638	-16	-
			Capital goods	-6 406	-6 483	-6 553	70	1
			Intermediate and other merchandise goods	-10 928	-11 041	-11 143	102	1
			Non-monetary gold	-652	-630	-593	-37	-6
		Total services		-7 921	-7 978	-8 020	42	1
- nil or rounded to zero (including null cells)
(a) For sign conventions, see paragraph 15 of the Explanatory Notes.
(b) For all time periods, estimates for sugar, sugar preparations and honey are included in Non-rural goods.
(c) This component is not seasonally adjusted.
(d) Caution should be used when interpreting recent trend estimates as they may be affected by unusual economic factors. For more details on trend estimates, see paragraph 19 of the Explanatory Notes.

EXPORTS OF GOODS AND SERVICES

Between July and August 2018, the trend estimate of goods and services credits rose $282m (1%) to $36,664m.

In seasonally adjusted terms, goods and services credits rose $185m (1%) to $36,562m. Non-monetary gold rose $228m (13%) and rural goods rose $134m (3%). Non-rural goods fell $222m (1%). Net exports of goods under merchanting remained steady at $18m. Services credits rose $45m (1%).


Exports of goods

GOODS CREDITS, Seasonally Adjusted
							Change in:
				Jun 2018	Jul 2018	Aug 2018	Aug 2018	Aug 2018
				$m	$m	$m	$m	%
Total goods credits				29 083	28 811	28 950	139	-
	General merchandise			27 103	26 998	26 909	-89	-
		Rural goods		4 133	4 067	4 201	134	3
			Meat and meat preparations	1 171	1 195	1 268	73	6
			Cereal grains and cereal preparations	712	635	553	-82	-13
			Wool and sheepskins	379	352	370	18	5
			Other rural(a)	1 872	1 886	2 010	124	7
		Non-rural goods		22 970	22 931	22 709	-222	-1
			Metal ores and minerals(b)	7 937	7 647	7 408	-239	-3
			Coal, coke and briquettes(c)	5 536	5 605	5 516	-89	-2
			Other mineral fuels(b)(d)	4 254	4 364	4 530	166	4
			Metals (excl. non-monetary gold)	1 003	1 364	1 176	-188	-14
			Machinery	892	928	898	-30	-3
			Transport equipment	362	325	342	17	5
			Other manufactures	1 875	1 870	1 862	-8	-
			Other non-rural (incl. sugar and beverages)(a)	929	656	807	151	23
			Goods procured in ports by carriers(d)	182	171	170	-1	-1
	Net exports of goods under merchanting(e)			5	18	18	-	-
	Non-monetary gold(e)			1 975	1 795	2 023	228	13
- nil or rounded to zero (including null cells)
(a) For all time periods, estimates for sugar, sugar preparations and honey are included in Other non-rural.
(b) From July 2005, this component is seasonally adjusted using seasonal factors derived from a monthly volume series.
(c) From July 1971 to June 2005, only a length-of-month adjustment has been applied to this component. From July 2005, this component is seasonally adjusted using seasonal factors derived from a monthly volume series.
(d) In using these seasonally adjusted series, care should be exercised because of the difficulties associated with reliably estimating the seasonal pattern.
(e) This component is not seasonally adjusted.

RURAL GOODS

In trend terms, exports of rural goods rose $12m to $4,149m.

In seasonally adjusted terms, exports of rural goods rose $134m (3%) to $4,201m.

The main components contributing to the rise in seasonally adjusted estimates were:

• other rural, up $124m (7%)
• meat and meat preparations, up $73m (6%).

Partly offsetting these rises was cereal grains and cereal preparations, down $82m (13%).

NON-RURAL GOODS

In trend terms, exports of non-rural goods rose $162m (1%) to $22,923m.

In seasonally adjusted terms, exports of non-rural goods fell $222m (1%) to $22,709m.

The main components contributing to the fall in seasonally adjusted estimates were:

• metal ores and minerals, down $239m (3%)
• metals (excl. non-monetary gold), down $188m (14%)
• coal, coke and briquettes, down $89m (2%).

Partly offsetting these falls were:

• other mineral fuels, up $166m (4%)
• other non-rural (incl. sugar and beverages), up $151m (23%).

For price and volume details, see the Selected commodities section.

NET EXPORTS OF GOODS UNDER MERCHANTING

In trend terms, net exports of goods under merchanting rose $3m (25%) to $15m.

In seasonally adjusted terms, net exports of goods under merchanting remained steady at $18m.

NON-MONETARY GOLD

In trend terms, exports of non-monetary gold rose $65m (3%) to $1,951m.

In original and seasonally adjusted terms, exports of non-monetary gold rose $228m (13%) to $2,023m.


Exports of services

SERVICES CREDITS, Seasonally Adjusted
						Change in:
			Jun 2018	Jul 2018	Aug 2018	Aug 2018	Aug 2018
			$m	$m	$m	$m	%
Total services credits			7 617	7 566	7 611	45	1
	Manufacturing services on physical inputs owned by others(a)		-	-	-	-	-
	Maintenance and repair services n.i.e.(a)		4	3	3	-	-
	Transport		647	660	659	-1	-
		Passenger(b)	245	242	240	-2	-1
		Freight(c)	22	23	23	-	-
		Other	253	259	259	-	-
		Postal and courier services(d)	127	136	137	1	1
	Travel		4 918	4 810	4 840	30	1
	Other services		2 048	2 093	2 109	16	1
Memorandum item
	Tourism related services credits(e)		5 164	5 052	5 080	28	1
- nil or rounded to zero (including null cells)
(a) This component is not seasonally adjusted.
(b) Passenger services includes agency fees and commissions for air transport.
(c) In using these seasonally adjusted series, care should be exercised because of the difficulties associated with reliably estimating the seasonal pattern.
(d) Postal and courier services includes indirect commissions for sea transport.
(e) For a more detailed explanation of tourism related services, see paragraph 29 of the Explanatory Notes.

In trend terms, services credits rose $42m (1%) to $7,627m.

In seasonally adjusted terms, services credits rose $45m (1%) to $7,611m.

The main components contributing to the rise in seasonally adjusted estimates were:

• travel, up $30m (1%)
• other services, up $16m (1%).

In seasonally adjusted terms, tourism related services credits rose $28m (1%) to $5,080m.

In seasonally adjusted terms, total services credits contributed 21% of total goods and services exported.

IMPORTS OF GOODS AND SERVICES

Between July and August 2018, the trend estimate of goods and services debits rose $161m to $34,948m.

In seasonally adjusted terms, goods and services debits rose $130m to $34,958m. Capital goods rose $569m (9%) and consumption goods rose $32m. Non-monetary gold fell $289m (41%) and intermediate and other merchandise goods fell $264m (2%). Services debits rose $83m (1%).


Imports of goods

GOODS DEBITS(a), Seasonally Adjusted
							Change in:
				Jun 2018	Jul 2018	Aug 2018	Aug 2018	Aug 2018
				$m	$m	$m	$m	%
Total goods debits				-26 664	-26 817	-26 864	47	-
	General merchandise			-26 026	-26 110	-26 446	336	1
		Consumption goods		-8 744	-8 611	-8 643	32	-
			Food and beverages, mainly for consumption	-1 309	-1 257	-1 290	33	3
			Household electrical items	-515	-512	-486	-26	-5
			Non-industrial transport equipment	-2 010	-2 009	-2 046	37	2
			Textiles, clothing and footwear	-1 564	-1 526	-1 538	12	1
			Toys, books and leisure goods	-573	-570	-544	-26	-5
			Consumption goods n.e.s.	-2 774	-2 738	-2 740	2	-
		Capital goods		-6 604	-6 198	-6 767	569	9
			Machinery and industrial equipment	-2 037	-2 005	-2 071	66	3
			ADP equipment	-972	-947	-1 002	55	6
			Telecommunications equipment	-1 114	-1 066	-1 189	123	12
			Civil aircraft and confidentialised items(b)(c)	-489	-249	-670	421	169
			Industrial transport equipment n.e.s.	-1 262	-1 220	-1 147	-73	-6
			Capital goods n.e.s.(d)	-730	-711	-687	-24	-3
		Intermediate and other merchandise goods		-10 677	-11 301	-11 037	-264	-2
			Food and beverages, mainly for industry	-191	-145	-158	13	9
			Primary industrial supplies n.e.s.(d)	-240	-190	-328	138	73
			Fuels and lubricants(c)	-3 028	-3 738	-3 342	-396	-11
			Parts for transport equipment	-1 063	-1 095	-1 074	-21	-2
			Parts for ADP equipment	-47	-47	-47	-	-
			Other parts for capital goods	-1 556	-1 537	-1 572	35	2
			Organic and inorganic chemicals	-296	-324	-308	-16	-5
			Paper and paperboard	-206	-201	-202	1	-
			Textile yarn and fabrics	-129	-128	-121	-7	-5
			Iron and steel	-325	-335	-256	-79	-24
			Plastics	-398	-401	-402	1	-
			Processed industrial supplies n.e.s.	-3 051	-2 994	-2 980	-14	-
			Other merchandise goods(b)(e)	-25	-39	-120	81	208
			Goods procured in ports by carriers(c)	-120	-127	-127	-	-
	Non-monetary gold(c)			-638	-707	-418	-289	-41
- nil or rounded to zero (including null cells)
(a) For sign conventions, see paragraph 15 of the Explanatory Notes.
(b) From July 2008, commodities subject to a 'no commodity details' or 'no value details' restriction are included in Civil aircraft and confidentialised items. For earlier periods, commodities subject to a 'no commodity details' or 'no value details' restriction are included in Other merchandise goods.
(c) This component is not seasonally adjusted.
(d) In using these seasonally adjusted series, care should be exercised because of the difficulties associated with reliably estimating the seasonal pattern.
(e) From July 1981, this component is not seasonally adjusted.

CONSUMPTION GOODS

In trend terms, imports of consumption goods fell $16m to $8,638m.

In seasonally adjusted terms, imports of consumption goods rose $32m to $8,643m.

The main components contributing to the rise in seasonally adjusted estimates were:

• non-industrial transport equipment, up $37m (2%)
• food and beverages, mainly for consumption, up $33m (3%)
• textiles, clothing and footwear, up $12m (1%).

Partly offsetting these rises were:

• household electrical items, down $26m (5%)
• toys, books and leisure goods, down $26m (5%).

CAPITAL GOODS

In trend terms, imports of capital goods rose $70m (1%) to $6,553m.

In seasonally adjusted terms, imports of capital goods rose $569m (9%) to $6,767m.

The main components contributing to the rise in seasonally adjusted estimates were:

• civil aircraft and confidentialised items, up $421m
• telecommunications equipment, up $123m (12%)
• machinery and industrial equipment, up $66m (3%).

Partly offsetting these rises was industrial transport equipment n.e.s., down $73m (6%).

INTERMEDIATE AND OTHER MERCHANDISE GOODS

In trend terms, imports of intermediate and other merchandise goods rose $102m (1%) to $11,143m.

In seasonally adjusted terms, imports of intermediate and other merchandise goods fell $264m (2%) to $11,037m.

The main components contributing to the fall in seasonally adjusted estimates were:

• fuels and lubricants, down $396m (11%)
• iron and steel, down $79m (24%).

Partly offsetting these falls were:

• primary industrial supplies n.e.s., up $138m (73%)
• other merchandise goods, up $81m.

NON-MONETARY GOLD

In trend terms, imports of non-monetary gold fell $37m (6%) to $593m.

In original and seasonally adjusted terms, imports of non-monetary gold fell $289m (41%) to $418m.


Imports of services

SERVICES DEBITS(a), Seasonally Adjusted
						Change in:
			Jun 2018	Jul 2018	Aug 2018	Aug 2018	Aug 2018
			$m	$m	$m	$m	%
Total services debits			-7 918	-8 011	-8 094	83	1
	Manufacturing services on physical inputs owned by others(b)		-	-	-	-	-
	Maintenance and repair services n.i.e.(b)		-57	-89	-50	-39	-44
	Transport		-1 524	-1 535	-1 551	16	1
		Passenger(c)	-614	-623	-614	-9	-1
		Freight	-831	-824	-849	25	3
		Other(b)	-71	-81	-81	-	-
		Postal and courier services(d)(e)	-8	-7	-7	-	-
	Travel		-3 991	-4 017	-4 107	90	2
	Other services		-2 346	-2 371	-2 386	15	1
Memorandum item
	Tourism related services debits(f)		-4 604	-4 640	-4 721	81	2
- nil or rounded to zero (including null cells)
(a) For sign conventions, see paragraph 15 of the Explanatory Notes.
(b) This component is not seasonally adjusted.
(c) Passenger services includes agency fees and commissions for air transport.
(d) Postal and courier services includes indirect commissions for sea transport.
(e) In using these seasonally adjusted series, care should be exercised because of the difficulties associated with reliably estimating the seasonal pattern.
(f) For a more detailed explanation of tourism related services, see paragraph 29 of the Explanatory Notes.

In trend terms, services debits rose $42m (1%) to $8,020m.

In seasonally adjusted terms, services debits rose $83m (1%) to $8,094m.

The main components contributing to the rise in seasonally adjusted estimates were:

• travel, up $90m (2%)
• transport, up $16m (1%)
• other services, up $15m (1%).

Partly offsetting these rises was maintenance and repair services n.i.e., down $39m (44%).

In seasonally adjusted terms, tourism related services debits rose $81m (2%) to $4,721m.

In seasonally adjusted terms, total services debits contributed 23% of total goods and services imported.


Selected commodities

Selected commodities, quantity and unit value analysis - International merchandise trade basis(a): Original terms
		Change in
		Mar 2018	Apr 2018	May 2018	Jun 2018	Jul 2018	Aug 2018
		%	%	%	%	%	%
Iron ore
Lump
	Quantity	10	2	3	-1	-3	-3
	Unit value	-3	-5	1	2	5	-
Fines
	Quantity	9	6	4	-2	-12	9
	Unit value	-5	-6	-1	-2	1	-
Coal
Hard coking
	Quantity	9	-10	25	6	-13	-2
	Unit value	1	-6	-1	-2	p1	p -
Semi-soft
	Quantity	2	-14	23	3	-20	13
	Unit value	6	2	-	-	p1	p-2
Thermal
	Quantity	7	7	-7	13	9	-9
	Unit value	1	-5	3	3	6	5
Gas
LNG
	Quantity	3	-2	-8	11	17	1
	Unit value	1	4	4	2	2	3
- nil or rounded to zero (including null cells)
p preliminary figure or series subject to revision
(a) Data in this table are on a revised international merchandise trade basis and exclude value adjustments applied to balance of payments series.

International merchandise trade exports data presented in the above table are based on information reported by exporters to the Department of Home Affairs (Home Affairs). For commodities such as iron ore and coal, newly negotiated contract prices are not fully reflected in data first reported to Home Affairs. Final quantity and/or unit price information is updated progressively in international merchandise trade data as exporters revise the information provided to Home Affairs. When additional information for these commodities is available, the ABS may adjust the data to reflect actual transaction values.

Unit values in this publication are presented in Australian dollar terms. Movements in the unit values for some commodities incorporate movements in the United States dollar prices reported to Home Affairs and movements in the Australian dollar to United States dollar exchange rate.

On an international merchandise trade basis, in original terms (noting the footnote in the above table), between July and August 2018 the largest movements recorded for the following selected commodities were:

Iron ore lump, down $43m (3%), with quantities down 3%. Exports to:

• China (excluding SARs and Taiwan) fell $58m (5%), with quantities down 5%
• the Republic of Korea fell $49m (50%), with quantities down 52% and unit values up 6%
• Taiwan rose $34m (62%), with quantities up 58% and unit values up 2%
• Japan rose $29m (15%), with quantities up 19% and unit values down 3%.

Iron ore fines, up $298m (9%), with quantities up 9%. Exports to:

• China (excluding SARs and Taiwan) rose $382m (15%), with quantities up 16% and unit values down 1%
• the Republic of Korea fell $88m (31%), with quantities down 34% and unit values up 4%.

Hard coking coal, down $60m (3%), with quantities down 2%. Exports to:

• India fell $117m (16%), with quantities down 17% and unit values up 1%
• Japan fell $115m (28%), with quantities down 27% and unit values down 1%
• China (excluding SARs and Taiwan) rose $141m (26%), with quantities up 30% and unit values down 2%.

Semi-soft coal, up $88m (11%), with quantities up 13% and unit values down 2%. Exports to:

• China (excluding SARs and Taiwan) rose $45m (65%), with quantities up 49% and unit values up 11%
• Taiwan rose $41m (62%), with quantities up 66% and unit values down 2%.

Thermal coal, down $106m (4%), with quantities down 9% and unit values up 5%. Exports to:

• China (excluding SARs and Taiwan) fell $139m (30%), with quantities down 32% and unit values up 3%
• Taiwan fell $65m (20%), with quantities down 20%
• Thailand fell $49m (75%), with quantities down 75% and unit values down 1%
• the Republic of Korea rose $129m (42%), with quantities up 30% and unit values up 10%.

Liquefied natural gas (LNG), up $124m (3%), with quantities up 1% and unit values up 3%.