Australiaâ€™s Trade Deficit Widens in October, Exports Slide on Weaker Prices
Australiaâ€™s trade deficit widened in October as the country exported 12% less coal and 8% less iron ore. The trade shortfall swelled to A$2.38 billion, which was larger than expected, and a large increase from Septemberâ€™s figure. Exports declined from about A$20.2 billion in September to A$19.5 billion in October, while imports fell about A$150 million. Therefore the 3% slide in exports was not offset by the 1% slide in imports. The report did show that volumes of exports were relatively steady and it was a decline in prices that was responsible for the decline. That could mean a bounce back as commodity prices recover.
Germanyâ€™s Trade Balance Surprises on Upside as Exports Climb
The German trade balance rose more than expected in October, climbing to â‚¬12.6 billion, as exports grew 2.5% while imports slid by a similar amount. Higher exports will help to bolster the economic recovery in the country. That is the second month in a row that exports were higher, and the fifth time in the past six months.
UK Trade Deficit Widens in October as Imports Rise More than Exports
The UK trade deficit on goods was 7.1 billion pounds in October, compared with a revised deficit of 6.9 billion pounds in September. Exports rose by 0.9 billion but that was more than offset by a rise of 1.1 billion in imports. The data shows that trade is rebounding, but the hope that a weaker sterling will help to boost the British economy by pushing up exports more strongly than imports is not materializing. Imports were higher in the third quarter as Britons imported more cars as a result of a cash-for-clunkers program, but with high unemployment and a weak economy imports should be expected to be suppressed going forward.
Both export and import prices were both 1.6% higher. The UK deficit on trade in both goods and services widened as well, to 3.2 billion pounds compared to a revised deficit of 3.1 billion in September (originally published as a deficit of 3.5 billion).