Australia’s trade balance dropped from $4.86 billion in April to $2.23 billion in May, below the estimate of $5.0 billion.

• Exports fell -2.7% MoM, driven by a decline of -2.6% MoM in general merchandise exports.
• Imports increased 3.8% MoM with gains across categories including an 8.6% MoM increase in capital goods imports.
• Within capital goods imports, sharp rises in aircraft (263.5% MoM), industrial transport equipment (15.4% MoM), and other capital goods (19.6% MoM) drove the rise.