Global| Sep 05 2018U.S. Trade Deficit Increases
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. trade deficit in goods and services widened to $50.08 billion during July from June's $45.74 billion which was little revised from last month's report. It was the deepest deficit since February. A deficit of $49.9 billion had [...]
The U.S. trade deficit in goods and services widened to $50.08 billion during July from June's $45.74 billion which was little revised from last month's report. It was the deepest deficit since February. A deficit of $49.9 billion had been expected in the Action Economics Forecast Survey. Exports fell 1.0% (+8.2% y/y) following a 0.7% decline. Imports were up 0.9% (9.1% y/y) after a 0.7% increase.
The deficit on goods trade widened to $73.1 billion in July from $68.9 billion in June. Exports of goods fell 1.6% (+9.6% y/y) following a 1.3% decline. Foods, feeds & beverages exports fell 6.3% (+13.1% y/y) while capital goods exports dropped 2.0% (+3.6% y/y). Nonauto consumer goods exports fell 2.4% (+0.3% y/y) but exports of automotive vehicles & parts increased 1.7% (1.4% y/y). Industrial supplies & materials exports, which includes petroleum, gained 0.5% (23.9% y/y). The value of exports of petroleum strengthened 2.6% (54.4% y/y) after an 8.5% jump.
Imports of goods rose 0.9% (10.3% y/y) in July following a 0.7% increase. Foods, feeds & beverage imports rose 2.2% (7.1% y/y) following a 1.7% decline. Imports of automotive vehicles & parts also gained 1.7% (4.0% y/y) for the second straight month. Industrial supplies & materials imports increased 1.1% (21.3% y/y) as oil prices rose, after a 1.9% increase. Imports of nonauto consumer goods declined 1.5% (+8.0% y/y) after a 1.8% increase.
Petroleum imports advanced 3.7% (50.1% y/y) following a 4.2% gain. The per barrel cost of crude oil rose to $64.63 (49.8% y/y), the highest price since $73.60 in December 2014. The value of energy-related petroleum product imports strengthened 7.6% (55.6% y/y) while the quantity of energy-related product imports rose 4.4% (4.5% y/y).
The surplus on services trade was fairly steady at $23.06 billion. Services exports increased 0.3% (5.4% y/y) after a 0.5% gain. Travel exports improved 0.2% (2.2% y/y). Charges for the use of intellectual property gained 0.8% (7.6% y/y) and financial services exports were fairly steady (6.5% y/y).
Imports of services rose 0.7% (3.9% y/y) after a 0.8% gain. Travel imports rebounded 1.4% (7.0% y/y) after three consecutive months of decline. Charges for intellectual property rose 0.3% (12.5% y/y) and financial services imports rose 1.4% (7.5% y/y).
The goods trade deficit with China deepened to $34.1 billion (SA) in July. Exports to China rose 2.8% y/y while imports were up 8.0% y/y. The deficit with the European Union deepened to $17.6 billion as exports to Europe increased 11.4% y/y and imports gained 18.7% y/y. The trade deficit with Japan deepened slightly to $5.5 billion as exports to Japan grew 10.6% y/y and imports rose 3.0% y/y.
The international trade data can be found in Haver's USECON database. Detailed figures are available in the USINT database. The expectations figures are from the Action Economics Forecast Survey, which is carried in AS1REPNA.
| Foreign Trade in Goods & Services (Current $) | Jul | Jun | May | Y/Y | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|
| U.S. Trade Deficit ($ bil.) | 50.08 | 45.74 | 42.56 | 44.22 (7/17) |
552.28 | 502.00 | 498.53 |
| Exports of Goods & Services (% Chg) | -1.0 | -0.7 | 2.0 | 8.2 | 6.1 | -2.2 | -4.6 |
| Petroleum (% Chg) | 2.6 | 8.5 | 0.7 | 54.4 | 41.2 | -9.6 | -32.5 |
| Imports of Goods & Services (% Chg) | 0.9 | 0.7 | 0.5 | 9.1 | 6.8 | -1.7 | -3.5 |
| Petroleum (% Chg) | 3.7 | 4.2 | -0.7 | 50.1 | 27.2 | -19.5 | -45.5 |
| Nonpetroleum Goods (% Chg) | 0.6 | 0.4 | 0.6 | 7.3 | 5.6 | -1.2 | 2.2 |
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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