Fed: Low $A boosts trade suplus past $1 bln

AAP General News (Australia)
08-30-2001
Fed: Low $A boosts trade suplus past $1 bln

CANBERRA, Aug 30 AAP - Australia's trade surplus jumped to more than $1 billion in
July, despite a drop in exports, demonstrating the benefits of a lower currency.

Allowing for seasonal factors, the international trade in goods and services came in
at $1.089 billion last month, the Australian Bureau of Statistics said.

It was the sixth monthly trade surplus in a row.

Exports, however, dipped two per cent to $13.186 billion, while imports fell five per
cent to $12.097 billion, the ABS said.

The lower Australian dollar has made local goods and services cheaper for both foreign
and domestic buyers.

It also makes foreign purchases more expensive, and therefore less attractive, for
Australian buyers.

In a good sign for the economy, imports of capital goods were up eight per cent, suggesting
business is lifting investment.

AAP jph/daw/was

KEYWORD: TRADE BALANCE

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