SYDNEY, Dec 5 Reuters Australia39;s current account slid into deficit in the September quarter as prices for some commodity exports fell and locals spent more money abroad, leaving trade as a drag on the economy overall.

Other data from the Australian Bureau of Statistics on Tuesday showed government spending was surprisingly strong in the quarter, helping offset the drag.

Australia39;s current account fell to a deficit of A158 million 104.49 million in the third quarter. That was down from a surplus of A7.8 billion in the second quarter and well under forecasts of a A3.1 billion surplus.

Exports were pulled down by falling prices for coal and liquefied natural gas, while imports of oil climbed and more Australians travelled abroad.

The ABS said net exports would subtract 0.6 percentage points from gross domestic product GDP, compared with forecasts of 0.2 percentage points.

That was balanced in part by a 1 rise in government spending, which added 0.3 percentage point to GDP. In addition, a sharp rise in mining inventories in the quarter looked to have contributed around 0.9 percentage point to growth, suggesting some upside risk to GDP.

Figures for thirdquarter GDP are due on Wednesday; median forecasts had been for a subpar increase of 0.4, which would see annual growth slow to 1.8, its lowest rate since late 2020, when the pandemic had closed much of the economy.

The resilience of domestic demand is a major reason the Reserve Bank of Australia RBA raised…