ANALYSIS AND COMMENTS


BALANCE ON GOODS AND SERVICES

The trend estimate of the balance on goods and services was a surplus of $2,549m in August 2010, an increase of $145m on the revised surplus in July 2010.

In seasonally adjusted terms, the balance on goods and services was a surplus of $2,346m in August 2010, an increase of $603m on the revised surplus in July 2010.


EXPORTS OF GOODS AND SERVICES

Between July 2010 and August 2010 the trend estimate of goods and services credits rose $195m (1%) to $25,703m.

In seasonally adjusted terms, goods and services credits fell $608m (2%) to $24,711m. Non-monetary gold fell $401m (32%), non-rural goods fell $145m (1%) and rural goods fell $85m (3%). Services credits rose $23m (1%).


Exports of goods

RURAL GOODS

In trend terms, exports of rural goods rose $58m (2%) to $2,507m.

In seasonally adjusted terms, exports of rural goods fell $85m (3%) to $2,460m.

The main component contributing to the fall in the seasonally adjusted estimates was cereal grains and cereal preparations, down $81m (15%).

NON-RURAL GOODS

In trend terms, exports of non-rural goods rose $203m (1%) to $17,495m.

In seasonally adjusted terms, exports of non-rural goods fell $145m (1%) to $16,942m.

The main component contributing to the fall in the seasonally adjusted estimates was metal ores and minerals, down $646m (10%).

Partly offsetting this decrease were the following components:

• coal, coke and briquettes, up $360m (10%)
• other non-rural (incl. sugar and beverages), up $55m (5%)
• other mineral fuels, up $46m (2%).

For price and volume details, see the Selected commodities table at the end of this section.

NET EXPORTS OF GOODS UNDER MERCHANTING

In trend terms, net exports of goods under merchanting rose $2m (8%) to $28m.

In seasonally adjusted terms, net exports of goods under merchanting remained steady at $27m.

NON-MONETARY GOLD

In trend terms, exports of non-monetary gold fell $71m (5%) to $1,241m.

In seasonally adjusted terms, non-monetary gold fell $401m (32%) to $840m.


Exports of services


In trend terms, services credits rose $4m to $4,432m.

In seasonally adjusted terms, services credits rose $23m (1%) to $4,442m.

The main component contributing to the increase in the seasonally adjusted estimates was travel services, up $22m (1%).

In seasonally adjusted terms, tourism related services credits rose $22m (1%) to $3,006m.


IMPORTS OF GOODS AND SERVICES

Between July 2010 and August 2010 the trend estimate of goods and services debits rose $50m to $23,154m.

In seasonally adjusted terms, goods and services debits fell $1,211m (5%) to $22,365m. Intermediate and other merchandise goods fell $1,052m (12%), capital goods fell $127m (3%) and non-monetary gold fell $78m (22%). Consumption goods rose $42m (1%). Services debits rose $4m.


Imports of goods


CONSUMPTION GOODS

In trend terms, imports of consumption goods rose $22m to $5,565m.

In seasonally adjusted terms, imports of consumption goods rose $42m (1%) to $5,537m.

The main component contributing to the rise in the seasonally adjusted estimates was consumption goods n.e.s., up $57m (3%).

Partly offsetting this increase was the non-industrial transport equipment component, down $19m (1%).

CAPITAL GOODS

In trend terms, imports of capital goods rose $13m to $4,195m.

In seasonally adjusted terms, imports of capital goods fell $127m (3%) to $4,058m.

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

• civil aircraft and confidentialised items, down $180m (42%)
• machinery and industrial equipment, down $76m (6%).

Partly offsetting these decreases was the telecommunications equipment component, up $118m (21%).

INTERMEDIATE AND OTHER MERCHANDISE GOODS

In trend terms, imports of intermediate and other merchandise goods rose $76m (1%) to $8,191m.

In seasonally adjusted terms, imports of intermediate and other merchandise goods fell $1,052m (12%) to $7,719m.

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

• other merchandise goods, down $457m (82%). The Department of Defence imported six super hornets in July 2010
• fuels and lubricants, down $308m (13%)
• processed industrial supplies, down $73m (4%)
• primary industrial supplies n.e.s., down $70m (40%)
• iron and steel, down $69m (17%).

NON-MONETARY GOLD

In trend terms, imports of non-monetary gold fell $100m (19%) to $425m.

In seasonally adjusted terms, non-monetary gold fell $78m (22%) to $270m.


Imports of services


In trend terms, services debits rose $39m (1%) to $4,779m.

In seasonally adjusted terms, services debits rose $4m to $4,781m.

The main component contributing to the rise in the seasonally adjusted estimates was travel services, up $21m (1%).

Partly offsetting this increase was the transport services component, down $18m (1%).

In seasonally adjusted terms, tourism related services debits rose $38m (1%) to $2,611m.


Selected commodities

Selected commodities, Price and volume analysis: Recorded Trade Basis
		Mar 2010	Apr 2010	May 2010	Jun 2010	Jul 2010	Aug 2010
		%	%	%	%	%	%
Iron ore(a)
Lump
	Volumes	12	-9	5	-4	2	-2
	Price	-2	43	9	6	9	np
Fines
	Volumes	7	5	-3	11	-9	4
	Price	-	38	13	5	5	np
Coal
Hard coking
	Volumes	1	41	2	9	-28	38
	Price	5	12	13	5	-	-7
Semi-soft
	Volumes	-7	15	11	-3	-1	-11
	Price	-3	28	20	9	-2	-4
Bituminous (Thermal)
	Volumes	-4	22	-9	15	4	3
	Price	-1	3	12	5	-2	-2
- nil or rounded to zero (including null cells)
np not available for publication but included in totals where applicable, unless otherwise indicated
(a) The equivalent Balance of Payments series includes adjustments which impact on percentage change of prices for August 2010. For more information see the section Commodity prices adjustment for details.

Between July and August 2010 exports of hard coking coal increased $466m (28%) on a recorded trade basis. Exports to China increased $243m (481%) and to India increased $179m (45%). This partially reversed the decrease of $629m (28%) between June and July 2010.