Global| May 03 2018U.S. Trade Deficit Narrows Sharply
by:Tom Moeller
|in:Economy in Brief
Summary
The U.S. trade deficit in goods and services declined to $48.96 billion during March from $57.74 billion in February, revised from $57.6 billion. It was the narrowest deficit in six months. A $52.3 billion deficit had been expected in [...]
The U.S. trade deficit in goods and services declined to $48.96 billion during March from $57.74 billion in February, revised from $57.6 billion. It was the narrowest deficit in six months. A $52.3 billion deficit had been expected in the Action Economics Forecast Survey. Exports increased 2.0% (8.8% y/y) following an unrevised 1.7% gain. Imports declined 1.8% (+8.9% y/y) after an unrevised 1.7% rise.
The deficit on goods trade declined to $68.29 billion from a roughly ten year high of $75.81 billion. Exports of goods gained 2.9% (11.1% y/y) following a 2.3% rise. Exports of foods, feeds & beverages jumped 9.7% (7.4% y/y) following a 0.4% uptick (7.3% y/y). Capital goods exports gained 4.2% (9.1% y/y) after a 1.4% gain. Exports of industrial materials rose 2.2% (19.8% y/y) following a 4.8% increase. Nonauto consumer goods exports were up 0.9% (4.2% y/y) following a 4.7% fall. To the downside, exports of motor vehicles & parts fell 4.4% (+8.7 y/y) following a 6.7% gain.
Imports of goods declined 1.7% in March (+9.1% y/y) following a 1.6% gain. Foods, feeds & beverage imports fell 3.3% (+10.7% y/y) after a 6.4% rise. Capital goods imports were off 2.6% (+11.3% y/y) following a 3.2% increase. Industrial supplies & materials imports declined 1.5% (+9.1% y/y) after a 1.5% increase. Nonauto consumer product imports fell 1.7% (+10.9% y/y) following a 1.0% increase. Motor vehicle & parts imports gained 0.7% (2.5% y/y) after a 0.5% rise.
All non-petroleum goods imports declined 1.6% (+9.2% y/y) and reversed the prior month's rise. Petroleum imports decreased 2.6% (+7.9% y/y) following February's 1.1% rise. The per barrel cost of crude oil eased to $54.00 (+16.7% y/y) from $54.61 per barrel. Nevertheless, the value of energy-related petroleum product imports increased 9.6% (4.3% y/y) after a 17.0% decline. The quantity of energy-related product imports rose 10.7% (-12.0% y/y) after a 17.1% drop.
The surplus on services trade increased to $20.5 billion in March from $19.2 billion, but it was down sharply from $22.3 billion roughly three years ago. Services exports increased 0.6% (4.5% y/y), the same as in the prior month. Travel exports increased 0.6% (0.0% y/y) after a 0.3% gain. Charges for the use of intellectual property gained 0.5% (14.4% y/y) after a 0.7% rise. Transport exports gained 1.3% (7.1% y/y) following a 2.5% rise.
Imports of services weakened 1.9% (+8.6% y/y) after a 2.7% advance. Charges for the use of intellectual property retreated 18.1% (+8.9% y/y) after a 23.3% jump. U.S. residents' travel abroad rose 0.4% (6.0% y/y) following a 0.1% uptick. Transport charges fell 1.0% (+6.1% y/y) and reversed the prior month's increase.
By country, the goods trade deficit with China narrowed to $25.9 billion in March (NSA) after a $29.3 billion deficit in February. Exports rose 28.6% y/y while imports rose 11.8% y/y. The deficit with the European Union was little changed at $12.1 billion (NSA). Exports increased 16.2% y/y and imports rose 13.9% y/y. The trade deficit with Japan deepened sharply to $6.4 billion as exports rose 12.0% y/y and imports declined 1.2% 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 $) | Mar | Feb | Jan | Y/Y | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|
| U.S. Trade Deficit | $48.96 bil. | $57.74 bil. | $56.67 bil. | $44.7 bil. (3/17) |
$568.44 bil. | $504.79 bil. | $500.44 bil. |
| Exports of Goods & Services (% Chg) | 2.0 | 1.7 | -1.3 | 8.8 | 5.6 | -2.5 | -4.7 |
| Imports of Goods & Services (% Chg) | -1.8 | 1.7 | 0.0 | 8.9 | 6.9 | -1.9 | -3.6 |
| Petroleum (% Chg) | -2.6 | 1.1 | 20.8 | 7.9 | 27.0 | -19.4 | -45.5 |
| Nonpetroleum Goods (% Chg) | -1.6 | 1.7 | -1.8 | 9.2 | 5.7 | -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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