Australia just posted another huge current account deficit

Justin Sullivan – Getty

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.

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