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Economy in Brief
U.S. Consumer Credit Outstanding Declines in January
Consumers reduced credit balances further in January...
U.S. Trade Deficit Widens to $68.2 Billion in January
The U.S. trade deficit in goods and services widened to $68.2 billion in January...
German Order Growth Gets Back in Gear Despite the Headwinds
German order growth is back in gear with total orders rising by 1.4% m/m in January...
U.S. Factory Orders & Shipments Rise Again in January
Manufacturing activity is strengthening. Factory orders rose 2.6% (2.8% y/y) in January...
U.S. Initial Unemployment Insurance Claims Rise Just 9,000
Initial claims for unemployment insurance rose modestly by 9,000 to 745,000 in the week ended February 27...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller December 14, 2005
The October U.S. foreign trade deficit widened to a record $68.9B from a little revised $66.0B in September. Consensus expectations had been for a narrowing to $62.5B.
In the wake of Hurricanes Katrina & Rita imports of petroleum products, notably gasoline, surged 23.3% on top of a 27.9% September jump to a level nearly double last October's and up nearly four-fold from the 2003 monthly average.
That spike lifted overall imports by 2.7% for the second consecutive month, despite a decline in crude oil prices to $56.29 per bbl. and petroleum prices overall that were roughly flat m/m.
Imports of nonauto consumer goods were strong as well and posted a 1.2% rise (9.7% y/y), goosed additionally by a 3.9% (7.0% y/y) rise in automotive imports. Capital goods imports fell 0.3% (+7.8% y/y) but imports of advanced technology products jumped 4.9% (NSA, 7.7% y/y).
Total exports gained back most of the prior month's 2.4% collapse with a 1.7% jump. Capital goods exports rose 6.2% (9.8% y/y) with the end of the four-week strike at Boeing Co. that drove exports of civilian aircraft up nearly three-fold m/m (33.1% y/y). Exports of advanced technology products also rose a strong 10.4% (NSA, 6.6% y/y). Exports of capital goods overall rose a strong 6.2% (9.8% y/y) although consumer goods exports fell 5.6% (+5.8% y/y).
Services exports were about flat m/m (+10.4% y/y) as private travel fell 1.8% (+12.5% y/y) though "other" private transportation services rose 1.2% (14.3% y/y).
The US trade deficit with China widened to another record of $20.5B ($161.9B in 2004) due to imports which jumped 4.8% (NSA, 23.9% y/y) though exports surged as well by 22.2% (NSA, 32.7% y/y). The US trade deficit with Japan deepened sharply m/m to $7.4B ($75.6B in 2004) due to a 12.6% (NSA, 6.9% y/y) surge in imports and the monthly trade deficit with the Asian NICs deepened to $1.6B ($21.9B in 2004). The deficit with the European Union deepened sharply to $12.1B ($109.3B in 2004) due to a 13.0% (14.5% y/y) jump in imports.
Foreign Trade | Oct | Sept | Y/Y | 2004 | 2003 | 2002 |
---|---|---|---|---|---|---|
Trade Deficit | $68.9B | $66.0B | $55.6B (10/04) | $617.6B | $494.8B | $421.2B |
Exports - Goods & Services | 1.7% | -2.4% | 9.2% | 12.6% | 4.6% | -3.0% |
Imports - Goods & Services | 2.7% | 2.7% | 14.5% | 16.6% | 8.5% | 2.1% |