Australia August Trade Deficit A$2.03 Billion

Australia August Trade Deficit A$2.03 Billion

Australia posted a seasonally adjusted merchandise trade deficit of A$2.027 billion in August, the Australian Bureau of Statistics said on Wednesday.

That was well shy of forecasts for a shortfall of A$685 million following the downwardly revised A$1.530 billion deficit in July - which was originally pegged as a A$556 million deficit.

Exports were down 3.0 percent on month to A$24.589 billion after falling 3.0 percent in the previous month.

Goods and services credits fell 3 percent or A$844 million to A$25.757 billion. Non- rural goods dipped 6 percent or A$933 million and non-monetary gold was down A$2 million.

Rural goods were up 1 percent or A$37 million, while the net exports of goods under merchanting remained steady atA$16 million. Service credits rose 1 percent or A$53 million.

Imports eased 1.0 percent to A$26.615 billion after easing 1.0 percent a month earlier.

Goods and services debits declined 1 percent or A$348 million to A$26.313 billion. Capital goods were up A$10 million.

Intermediate and other merchandise goods fell 4 percent or A$383 million, while consumption goods rose 2 percent or A$107 million and non-monetary gold plummeted 24 percent or A$130 million. Services debits climbed 1 percent or A$50 million.

Also on Wednesday:

. An index measuring the performance of the service sectors in Australia came in with a score of 41.9 in September, the Australian Industry Group said - down from 42.4 in August and deeper into contraction. A score above 50 signals expansion in a sector, while a score below 50 means decline.

Among the individual components of the survey, communications, transportation and recreational services were down, while accommodations and restaurant services were up. Overall sales and new orders were down, while the employment sub-index ticked slightly higher.

. New home sales in Australia were down 5.3 percent on month in August, the Housing Industry Association said, hitting a 15-year low. That follows the 5.6 percent monthly contraction in July. Among the survey's individual components, the detached house market shed 5.8 percent and multi-unit sales fell 2.5 percent.

. Upon the release of the data, the Australian dollar declined against major counterparts, trading near 1.0231 against the U.S. dollar, 80.07 against the yen, 1.2623 against the euro and 1.2422 against the kiwi.