WA exports continue to soften

Merchandise exports were down more than 16.7 per cent for Western Australia in the 12 months to November 2015, compared to the corresponding previous period, despite a reduction in the national trade deficit.

The rolling 12 month export total for the state was $105 billion, the lowest level it has been since January 2011, and well down from the record high of $131 billion in the lead up to July 2014.

The month of November was smaller, too, down about 10 per cent from November 2014.

By comparison, the national trade deficit was $2.9 billion for November, down from $3.2 billion in October in seasonally adjusted terms.

That was higher thanks to higher rural exports and a fall in intermediate goods imports.

It was the twentieth consecutive monthly deficit.

CommSec chief economist Craig James said the figures were interesting for the detail rather than the bottom line.

“Some of the interesting trends at present are the lift in Australia’s services exports to record highs and the explosion in imports from India,” he said.

“In the past year $4.7 billion of goods were imported from India, a near doubling in the space of two years.

“The top imports from India are listed as refined petroleum, cars, pearls/gems and medicaments.”

By contrast, exports to India, from WA at least, continued to hover around the $2.1 billion mark.

WA merchandise exports to China steadied, with a rolling 12 month total of $55 billion, up $100 million, while to Japan, merchandise exports fell 3.3 per cent to $17.4 billion.