Australia’s trade surplus narrowed more than expected in April, as a downturn in exports outweighed a modest recovery in imports, according to data released by the Australian Bureau of Statistics on Thursday.
The trade balance recorded a surplus of A$5.41 billion for the month, falling short of economists’ expectations for a A$5.9 billion surplus and down from A$6.89 billion in March.
The weaker result was primarily driven by a 2.4% month-on-month decline in exports, reflecting reduced global demand for Australia’s key commodities.
Exports of metal ores and minerals dropped 4.7%, transport equipment fell 13%, while shipments of coal, coke, and briquettes plunged 16.1%.
The slump in demand was most notable from China, Australia’s largest trading partner, where recent U.S.-imposed trade tariffs have disrupted purchasing patterns. Australian goods bound for the United States also faced higher tariffs, further softening export demand.
Economic concerns also remain amid signs of deceleration in China. The Caixin manufacturing PMI contracted at its fastest pace since September 2022 earlier in the week, signalling subdued industrial demand and potentially limiting further export growth.
On the import side, total goods rose 1.1% in April. The increase was supported by firm domestic consumption and stronger business investment, particularly in capital goods such as industrial equipment.
