Global| Aug 10 2006U.S. Foreign Trade Deficit Improved Slightly
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. foreign trade deficit improved slightly in June to $64.8 billion from a revised $65.0 billion in May. Consensus expectations had been for a $65.7 billion deficit in June. Total exports rose 2.0% in June (+14.0% y/y) after a [...]
The U.S. foreign trade deficit improved slightly in June to $64.8 billion from a revised $65.0 billion in May. Consensus expectations had been for a $65.7 billion deficit in June.
Total exports rose 2.0% in June (+14.0% y/y) after a downward revised 2.1% gain in May, while imports were 1.2% higher in June (+12.9% y/y) after an upward revised rise of 2.3% in the previous month.
The value of goods exports was $86.6 billion (+3.0% in June) with the largest increases in capital goods (+2.6%), industrial supplies and materials (+3.2%) and automotive vehicles and parts (+4.7%). June imports of goods rose 1.2% from May to $156.9 billion with gains in consumer goods (+3.4%), and in automotive vehicles and parts (+5.8%). Decreases were evident in imports of industrial supplies and materials (-1.2%) and in capital goods (-0.3%).
While the goods deficit decreased by $0.7 billion to $70.4 billion in June, the services surplus was $0.5 billion lower than in May at $5.6 billion. Services exports for the month (mostly in travel and other private services) were down by $0.2 billion and imports of services advanced $0.3 billion (largely in royalties, license fees and passenger fares.
The U.S. trade deficit in goods with China rose to $19.7 billion in June (the third highest on record) from $17.7 billion in May. The deficit with Mexico increased $0.6 billion to surpass $6 billion for the first time.
| Foreign Trade | Jun | May | Y/Y | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|---|
| Trade Deficit | $64.8B | $65.0B | $58.4B (6/05) |
$716.7B | $611.3B | $494.9B |
| Exports - Goods & Services | +2.0% | +2.1% | +14.0% | 10.7% | 13.4% | 4.2% |
| Imports - Goods & Services | +1.2% | +2.3% | +12.9% | 13.0% | 16.7% | 8.3% |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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