Fed: Dec trade balance widens to $2.55b - ABS

AAP General News (Australia)
02-02-2004
Fed: Dec trade balance widens to $2.55b - ABS

Australia's trade gap with the rest of the world widened in December as Australians
took advantage of cheaper imported goods in the lead-up to Christmas.

The Australian Bureau of Statistics says the trade balance blew out from $1.72 billion
in November to $2.55 billion in December.

Analysts had expected a figure of around $2 billion.

The $839 million increase in the trade shortfall was partly caused by a drop in international
tourism.

The ABS says travel services fell 12 per cent in December, while exports of non-rural
goods dipped two per cent.

But a farming recovery pushed overseas sales of rural goods up six per cent and helped
limit the overall fall in exports in the month to two per cent.

Imports rose five per cent, driven by a 42 per cent leap in petrol and other fuels,
and a 22 per cent rise in machinery and industrial equipment.

Imports of consumption goods -- like food, clothes, toys and household appliances --
rose four per cent as the higher Aussie dollar cut the cost of many imported items.

AAP RTV kmh/sb/jmt

KEYWORD: TRADE (CANBERRA)

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