2011-03-03 11:11

CANBERRA - The impact of the recent floods on Australia's economy is starting to show up in the latest official housing and trade data, economists said on Thursday.

According to the Australian Bureau of Statistics(ABS), the trade balance for goods and services in January was a $1.9 billion surplus, narrowing from a revised $2.05 billion surplus in December 2010.

The result was slightly higher than the median market forecast that had centered on a surplus of $1.68 billion in the month.

Coal exports took an estimated $1.118 billion hit during the Queensland's floods, and Thursday's data showed exports dropped four percent in January compared to the previous month, but was offset by a similar fall in imports.

Meanwhile, figures from ABS also showed on Thursday that Australian building approvals fell 15.9 percent to 12,342 units in January, seasonally adjusted, from an upwardly revised 14,682 units in December.

Economists' forecasts had earlier centered on a 3.5 percent fall in building approvals in the month.

According to RBC Capital Market's senior economist Su-Lin Ong, it was a mixed set of data.

"It does look like the floods have had an impact on both sets of numbers," she told Australia Associated Press on Thursday.

"In the trade numbers, it's pretty clear the export volumes look to have been hit reasonably hard by the floods.

"Coking coal volumes in particular were down substantially, partly offset by higher prices and also a drop in imports, so that the overall trade position looks pretty good and a fair bit better than we've been anticipating.

"Net exports look as though they are going to be a reasonable detractor in Q1."

Ong said there was also some impact from the floods for the building approvals data.