ANALYSIS AND COMMENTS


BALANCE ON GOODS AND SERVICES

In trend terms, the balance on goods and services was a deficit of $1,636m in June 2014, an increase of $558m (52%) on the deficit in May 2014.

In seasonally adjusted terms, the balance on goods and services was a deficit of $1,683m in June 2014, a decrease of $360m (18%) on the deficit in May 2014.

The sum of seasonally adjusted balances for the three months to June 2014 was a deficit of $4,775m, a turnaround of $7,738m on the surplus of $2,963m for the three months to March 2014. However, if seasonal factors used in compiling the quarterly balance of payments are applied, the preliminary June quarter 2014 deficit was $4,483m, a turnaround of $7,071m on the revised March quarter 2014 surplus of $2,588m.

Revised quarterly estimates will be included in Balance of Payments - Goods and Services, Preliminary Quarterly Estimates (cat. no. 5302.0.55.004) and Balance of Payments and International Investment Position, Australia (cat. no. 5302.0).


EXPORTS OF GOODS AND SERVICES

Between May and June 2014, the trend estimate of goods and services credits fell $533m (2%) to $26,796m.

In seasonally adjusted terms, goods and services credits rose $125m to $26,620m. Rural goods rose $135m (4%), non-monetary gold rose $68m (7%) and net exports of goods under merchanting rose $1m. Non-rural goods fell $116m (1%). Services credits rose $38m (1%).


Exports of goods

RURAL GOODS

In trend terms, exports of rural goods fell $74m (2%) to $3,251m.

In seasonally adjusted terms, exports of rural goods rose $135m (4%) to $3,332m.

The main component contributing to the rise in seasonally adjusted estimates was other rural, up $130m (9%).

NON-RURAL GOODS

In trend terms, exports of non-rural goods fell $445m (2%) to $17,554m.

In seasonally adjusted terms, exports of non-rural goods fell $116m (1%) to $17,248m.

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

• metal ores and minerals, down $487m (7%)
• transport equipment, down $68m (14%).

Partly offsetting these falls were:

• other mineral fuels, up $326m (14%)
• metals (excl. non-monetary gold), up $210m (26%).

For price and volume details, see the Selected commodities section.

NET EXPORTS OF GOODS UNDER MERCHANTING

In trend terms, net exports of goods under merchanting fell $1m (100%) to -$1m.

In seasonally adjusted terms, net exports of goods under merchanting rose $1m (100%) to $1m.

NON-MONETARY GOLD

In trend terms, exports of non-monetary gold fell $25m (2%) to $1,056m.

In original and seasonally adjusted terms, exports of non-monetary gold rose $68m (7%) to $1,073m.


Exports of services


In trend terms, services credits rose $12m to $4,935m.

In seasonally adjusted terms, services credits rose $38m (1%) to $4,966m.

The main component contributing to the rise in seasonally adjusted estimates was other services, up $34m (2%).

In seasonally adjusted terms, tourism related services credits rose $5m to $3,111m.


IMPORTS OF GOODS AND SERVICES

Between May and June 2014, the trend estimate of goods and services debits rose $25m to $28,432m.

In seasonally adjusted terms, goods and services debits fell $235m (1%) to $28,302m. Capital goods fell $174m (3%), consumption goods fell $85m (1%) and non-monetary gold fell $14m (4%). Intermediate and other merchandise goods rose $10m. Services debits rose $29m.


Imports of goods


CONSUMPTION GOODS

In trend terms, imports of consumption goods fell $7m to $6,955m.

In seasonally adjusted terms, imports of consumption goods fell $85m (1%) to $6,890m.

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

• consumption goods n.e.s., down $42m (2%)
• food and beverages, mainly for consumption, down $26m (2%)
• non-industrial transport equipment, down $26m (2%).

Partly offsetting these falls was textiles, clothing and footwear, up $18m (2%).

CAPITAL GOODS

In trend terms, imports of capital goods fell $9m to $5,051m.

In seasonally adjusted terms, imports of capital goods fell $174m (3%) to $4,960m.

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

• civil aircraft and confidentialised items, down $77m (14%)
• telecommunications equipment, down $68m (9%)
• capital goods n.e.s., down $46m (6%).

INTERMEDIATE AND OTHER MERCHANDISE GOODS

In trend terms, imports of intermediate and other merchandise goods rose $15m to $9,998m.

In seasonally adjusted terms, imports of intermediate and other merchandise goods rose $10m to $10,029m.

The main component contributing to the rise in seasonally adjusted estimates was processed industrial supplies n.e.s., up $99m (4%).

Partly offsetting this rise were:

• iron and steel, down $69m (17%)
• other parts for capital goods, down $27m (2%).

NON-MONETARY GOLD

In trend terms, imports of non-monetary gold rose $3m (1%) to $332m.

In original and seasonally adjusted terms, imports of non-monetary gold fell $14m (4%) to $332m.


Imports of services


In trend terms, services debits rose $23m to $6,096m.

In seasonally adjusted terms, services debits rose $29m to $6,092m.

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

• travel, up $18m (1%)
• maintenance and repair services n.i.e., up $14m (34%).

Partly offsetting these rises was the other services component, down $5m.

In seasonally adjusted terms, tourism related services debits rose $51m (2%) to $3,146m.


Selected commodities

Selected commodities, Quantity and unit value analysis: International merchandise trade basis (a) - Original terms
		Change in
		Jan 2014	Feb 2014	Mar 2014	Apr 2014	May 2014	Jun 2014
		%	%	%	%	%	%
Iron ore
Lump
	Quantity	-19	12	1	-4	4	-5
	Unit value	3	-3	-8	-2	-5	p-6
Fines
	Quantity	-10	1	20	5	1	-2
	Unit value	-	-5	-10	-5	-9	p12
Coal
Hard coking
	Quantity	2	-16	23	7	-9	11
	Unit value	-	-4	-4	-10	1	-3
Semi-soft
	Quantity	-14	-8	13	-6	5	6
	Unit value	-1	-3	-4	-7	-2	-1
Thermal
	Quantity	-20	5	-7	2	4	-1
	Unit value	2	-1	-5	-6	1	-1
- nil or rounded to zero (including null cells)
p preliminary figure or series subject to revision
(a) Data in this table are on a revised international merchandise trade basis and exclude value adjustments applied to balance of payments series.

On an international merchandise trade basis, in original terms (noting the footnote in the above table), between May and June 2014 the largest movements recorded for the following selected commodities were:

Iron ore lump fell $163m (11%), with quantities down 5% and unit values down 6%.
Exports to:

• China (excluding SARs and Taiwan) fell $124m (13%), with quantities down 4% and unit values down 10%
• the Republic of Korea fell $32m (27%), with quantities down 27% and unit values up 1%.

Iron ore fines rose $433m (10%), with quantities down 2% and unit values up 12%.
Exports to China (excluding SARs and Taiwan) rose $564m (16%), with quantities up 1% and unit values up 15%.

Partly offsetting this rise was exports to Japan, down $114m (26%), with quantities down 27% and unit values up 1%.

Hard coking coal rose $87m (7%), with quantities up 11% and unit values down 3%.
Exports to:

• China (excluding SARs and Taiwan) rose $101m (49%), with quantities up 50% and unit values down 1%
• the Republic of Korea rose $41m (80%), with quantities up 82% and unit values down 1%.

Partly offsetting these rises was exports to Japan, down $93m (31%), with quantities down 27% and unit values down 6%.

Semi-soft coal rose $23m (4%), with quantities up 6% and unit values down 1%.
Exports to China (excluding SARs and Taiwan) rose $28m (28%), with quantities up 32% and unit values down 3%.

Thermal coal fell $32m (2%), with quantities down 1% and unit values down 1%.
Exports to Thailand fell $32m (76%), with quantities down 75% and unit values down 1%.