Global| Apr 04 2017U.S. Trade Deficit Narrows; Exports Rise, While Imports Decline
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. trade deficit in goods and services declined during February to its smallest level since October. The deficit of $43.6 bil. contrasted to $48.2 bil. in January, initially reported as $48.5 bil. Expectations had been for a [...]
The U.S. trade deficit in goods and services declined during February to its smallest level since October. The deficit of $43.6 bil. contrasted to $48.2 bil. in January, initially reported as $48.5 bil. Expectations had been for a $44.8 billion deficit in the Action Economics Forecast Survey. Total exports improved 0.2% (6.7% y/y) while imports fell 1.8% (+4.5% y/y).
Merchandise exports gained 0.3% in value (6.7% y/y) after a 0.8% rise. Nonauto consumer goods exports jumped 4.0% (2,0% y/y). Auto & parts exports increased 1.4% (5.8% y/y), while industrial supplies & materials exports gained 1.1% (22.2% y/y). Falling were exports of foods, feeds & beverages by 6.0% (+10.4% y/y) and capital goods exports by 1.4% (-0.7% y/y).
Services exports held steady (5.0% y/y). The value of charges for the use of intellectual property improved 0.1% (1.2% y/y). Financial services exports eased 0.2% (+10.8% y/y) while travel exports rose 0.3% (3.6% y/y).
The decline in imports was led by a 2.6% fall (+0.7% y/y) in nonpetroleum imports. Motor vehicle & parts imports declined 8.3% (-0.9% y/y) while nonauto consumer goods imports retreated 5.9% (-6.2% y/y) and reversed January's increase. Imports of industrial supplies & materials gained 3.3% (27.9% y/y). Capital goods imports rose 0.2% (3.8% y/y), while foods, feeds & beverage imports increased 2.3% (2.4% y/y).
A 3.3% increase (71.2% y/y) in the value of petroleum imports reflected a 7.4% y/y rise in the quantity of energy-related petroleum product imports. Crude petroleum prices rose 64.7% y/y to an average $45.25 per barrel.
Services imports eased 0.1% (+4.0% y/y). The value of charges for use of intellectual property rose 0.6% (10.6% y/y). Financial services imports rose 0.1% (9.6% y/y) and travel imports gained eased 0.3% (+6.1% y/y).
By country, the trade deficit with China lessened to $23.0 billion from $28.1 billion last February. Exports to China declined 2.7% (+21.7% y/y) while imports fell 20.8% (=9.4% y/y). The trade deficit with Japan shrank to $4.7 billion from $5.3 billion twelve months earlier. Exports to Japan increased 4.5% y/y and imports fell 4.3% y/y. The trade deficit with the European Union declined to $9.4 billion versus $9.9 billion one year earlier. Exports rose 2.0% y/y while imports eased 0.2% y/y. These country data are not seasonally adjusted.
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 the AS1REPNA.
| Foreign Trade in Goods & Services (Current Dollars) | Feb | Jan | Dec | Y/Y | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| U.S. Trade Deficit | $-43.6 bil. | $48.2 bil. | $44.3 bil. | $45.6 bil. (2/16) |
$500.6 bil. | $500.4 bil. | $490.2 bil. |
| Exports of Goods & Services (% Chg) | 0.2 | 0.8 | 2.7 | 6.7 | -2.2 | -4.9 | 3.6 |
| Imports of Goods & Services (% Chg) | -1.8 | 2.3 | 1.6 | 4.5 | -1.8 | -3.7 | 4.0 |
| Petroleum (% Chg) | 3.3 | 18.5 | -0.4 | 71.2 | -19.5 | -45.5 | -9.6 |
| Nonpetroleum Goods (% Chg) | -2.6 | 1.3 | 2.2 | 0.7 | -1.2 | 2.2 | 6.5 |
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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