Investing.com-- Australia’s trade balance rose less than expected in January as imports surged, and exports came in sharply below estimates amid bleak demand from China.
Trade balance shrunk to a surplus of A$5.09 billion in December, from A$6.56 billion seen in the prior month, data from the Australian Bureau of Statistics showed on Thursday. The reading was lower than expectations for a surplus of A$6.79 billion.
Overall exports rose by just 1.1%, sharply lower than the previous month’s 4.8% rise. This was due to lower demand for metals, machinery, and port products as Australia’s biggest export destination, China, continued to see weak demand amid U.S tariff tensions, weak domestic sentiment, and a beleaguered property sector.
Beijing has mobilized a slew of aggressive stimulus measures since September last year, but the effect of those measures seems to be waning.
Australia’s weaker trade balance was driven by a surge in imports, as local demand for overseas goods increased.
Australian imports jumped 5.9% month-on-month in December, compared to a 1.7% rise in November. This was attributable to higher demand for overseas consumption goods such as textiles, clothing and footwear, while capital goods also saw a jump in imports.