SYDNEY: Australia's trade surplus came in short of forecasts Thursday as mining exports fell, suggesting the global economic downturn was dampening demand from the nation's key trading partners.
The seasonally-adjusted surplus of Aus$1.38 billion ($1.43 billion) for November was Aus$38 million lower than the previous month and its lowest level in nine months, according to the Australian Bureau of Statistics.
A four percent, or Aus$349 million, drop in key iron ore and coal exports was the main factor behind the drop, partially offset by a 16 percent, or Aus$123 million, rise in cereal and grains shipments.
Analysts had expected a surplus of Aus$1.65 billion, and said the weaker result reflected a slowdown in global markets, especially Australia's traditional partner economies in Asia.
There were large slumps in the value of iron ore exports to China, Taiwan and South Korea, while coal exports fell sharply to Japan, South Korea and China as Asian economies slowed, dampening commodity prices.
"It looks like exports might have peaked in August and are starting to come off a little bit. We expect the surplus to narrow in the coming months," said John Peters, senior Commonwealth Bank economist.
Australia's central bank cut the official interest rate by 50 basis points to 4.25 percent in the final months of 2011 to buoy the economy as European debt jitters hit Asian economies and worried domestic investors.
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