International Trade in Goods and Services, Australia

• In seasonally adjusted terms, goods and services credits rose $1,219m (3%) to $36,186m.
• Non-monetary gold rose $687m (41%)
• Non-rural goods rose $144m (1%)
• Rural goods rose $125m (4%)
• Net exports of goods under merchanting rose $2m (4%)
• Services rose $260m (4%).
   

In seasonally adjusted terms, goods and services debits rose $358m (1%) to $27,984m.

• Consumption goods rose $549m (7%)
• Intermediate and other merchandise goods rose $429m (5%)
• Non-monetary gold fell $534m (40%)
• Capital goods fell $125m (2%)
• Services rose $40m (1%).
   

In original terms, the balance on goods and services for 2019-20 was a surplus of $77.4b, an increase of $28.3b on the surplus of $49.1b recorded in 2018-19, resulting from a $22.4b (5%) decrease in goods and services debits and a $5.9b (1%) increase in goods and services credits.

International Accounts uses the concurrent seasonal adjustment method, meaning that seasonal factors are re-estimated each time new data becomes available. If not appropriately accounted for, unusual events, such as COVID-19, can distort estimates calculated using this method. From March 2020, seasonal factors for series that have been notably impacted by COVID-19 will be calculated using data up to and including February 2020, then projected from March 2020 onwards. This approach, known as the forward factor method, ensures that the seasonal factors are not distorted by COVID-19 impacts.

The ABS has advised users that it had moved to using forward factors for seasonal analysis of a number of series, including Travel Services. Current ABS (and international practice) requires at least three years of data to assess whether a change in the seasonal pattern has occurred. Should COVID-19 result in a long-term change to the seasonal pattern then revisions to these series may occur in the future. The ABS will consult with users on any future methods changes to seasonal adjustment and potential revisions.

For more information on interpreting seasonally adjusted estimates of International travel services please see the May 2020 feature article International Travel Services time series which outlines the matter in greater detail.

The trend series attempts to measure underlying behaviour in international trade activity. In the short term, this measurement will be significantly affected by the current COVID-19 pandemic and subsequent changes to regular patterns in international trade that will occur during this time. If the trend estimates in this publication were to be calculated without fully accounting for this unusual event, they would provide a misleading view of underlying international trade activity.

It may be some time before the underlying trend in international trade activity can be accurately estimated. The trend series has therefore been suspended from March 2019 in the time series and will be reinstated when more certainty emerges in the underlying trend in international trade.

Quality assurance undertaken by the ABS confirmed that COVID-19 did not result in quality impacts to International Trade in Goods and Services statistics for June 2020. For information on the expected economic impacts of COVID-19, please see the ABS Chief Economist Series paper Measuring natural disasters in the Australian economy.

In seasonally adjusted terms, the balance on goods and services was a surplus of $8,202m in June 2020, an increase of $861m on the surplus in May 2020.

The sum of seasonally adjusted balances for the three months to June 2020 was a surplus of $23,407m, an increase of $4,176m on the surplus of $19,231m for the three months to March 2020. However, if seasonal factors used in compiling the quarterly balance of payments are applied, the preliminary June quarter 2020 surplus was $24,086m, an increase of $5,033m on the March quarter 2020 surplus of $19,053m.

In seasonally adjusted terms, goods and services credits rose $1,219m (3%) to $36,186m.

• Non-monetary gold rose $687m (41%)
• Non-rural goods rose $144m (1%)
• Rural goods rose $125m (4%)
• Net exports of goods under merchanting rose $2m (4%)
• Services rose $260m (4%).
   

In seasonally adjusted terms, exports of rural goods rose $125m (4%) to $3,626m.

The main component contributing to the rise in seasonally adjusted estimates was cereal grains and cereal preparations, up $135m (33%).

In seasonally adjusted terms, exports of non-rural goods rose $144m (1%) to $23,759m.

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

• metal ores and minerals, up $941m (9%)
• other manufactures, up $227m (14%).
   

Partly offsetting these rises were:

• other mineral fuels, down $788m (18%)
• coal, coke and briquettes, down $456m (12%).
   

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

In original and seasonally adjusted terms, net exports of goods under merchanting rose $2m (4%) to $47m.

In original and seasonally adjusted terms, exports of non-monetary gold rose $687m (41%) to $2,363m.

In seasonally adjusted terms, services credits rose $260m (4%) to $6,390m.

In original terms travel service credits fell $11m.

In seasonally adjusted terms, tourism related services credits rose $249m (7%) to $3,640m.

In seasonally adjusted terms, total services credits contributed 18% of total goods and services exported.

In seasonally adjusted terms, goods and services debits rose $358m (1%) to $27,984m.

• Consumption goods rose $549m (7%)
• Intermediate and other merchandise goods rose $429m (5%)
• Non-monetary gold fell $534m (40%)
• Capital goods fell $125m (2%)
• Services rose $40m (1%).
   

In seasonally adjusted terms, imports of consumption goods rose $549m (7%) to $8,217m.

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

• textiles, clothing and footwear, up $254m (16%)
• consumption goods n.e.s., up $220m (8%)
• household electrical items, up $157m (33%).
   

Partly offsetting these rises was non-industrial transport equipment, down $233m (25%).

In seasonally adjusted terms, imports of capital goods fell $125m (2%) to $5,487m.

The main component contributing to the fall in seasonally adjusted estimates was ADP equipment, down $410m (31%).

Partly offsetting this fall were:

• capital goods n.e.s., up $176m (35%)
• industrial transport equipment n.e.s., up $118m (22%).
   

In seasonally adjusted terms, imports of intermediate and other merchandise goods rose $429m (5%) to $9,595m.

The main component contributing to the rise in seasonally adjusted estimates was fuels and lubricants, up $357m (28%).

In original and seasonally adjusted terms, imports of non-monetary gold fell $534m (40%) to $806m.

In seasonally adjusted terms, services debits rose $40m (1%) to $3,879m.

In seasonally adjusted terms, tourism related services debits rose $6m (12%) to $55m.

In seasonally adjusted terms, total services debits contributed 14% of total goods and services imported.

International merchandise trade exports data presented in this publication are based on information reported by exporters to the Department of Home Affairs (Home Affairs). At the time of initial reporting to Home Affairs, the final prices at which transactions take place are not known for some commodities. Final quantity and/or unit price information is updated progressively in international merchandise trade data as exporters revise the information provided to Home Affairs.

For commodities such as iron ore and coal, newly negotiated contract prices are not fully reflected in data first reported to Home Affairs. When additional information on quantity and/or unit price for these commodities is available, the ABS may adjust the data to reflect actual transaction values.

Iron ore adjustments are applied on an international merchandise trade basis at the Australian Harmonized Export Commodity Classification (AHECC) level. Coal, coke and briquettes are adjusted on a balance of payments basis in current price, original terms. When actual final transaction prices become available estimates are replaced with these data.

In most instances, transfer of ownership occurs when goods cross the customs frontier. In certain circumstances the ownership of large value capital expenditure items can occur prior to the items crossing the customs frontier. The ABS may adjust the relevant balance of payments series to record the timing when transfer of ownership was affected.