Australia just posted another huge current account deficit

Australia has just posted another massive trade deficit in October, the Bureau of Statistics said this morning.

The ABS said the goods and services deficit ballooned by $902 million (38%) to $3.305 billion in October (in seasonally adjusted terms). That’s only the seventh trade deficit above $3 billion this century.

But it is the fourth time this year the deficit has printed above the $3 billion mark. That was against market expectations of a deficit of $2.665 billion.

Driving the deficit’s deterioration was an $829 million fall in goods and services credits with non-rural goods down $544 million and non-monetary gold down $115 million. Breaking down the data further, the big falls in non-rural goods were minerals, which dipped $366 million and metals, which dropped $175 million.

On the import side of the equation, there was only a small rise in goods and services debits of $74 million. But that rather benign move masked a fall in consumer goods imports of $349 million and a rise of $243 million in capital goods and a $268 million rise in intermediate and other goods.



Of the capital goods import rise, the breakdown showed a $539 million increase in machinery and industrial equipment and a $236 million increase in industrial transport equipment.

That’s CAPEX. So even though the number is a blowout, this is one good sign within the data.

Source: Business Insider Australia, dated 03/12/2015.