US Trade Deficit Widens Sharply in June

The US trade deficit widened 7.3 percent to USD 46.3 billion in June 2018 from a revised USD 43.2 billion in the previous month and below market expectations of USD 46.5 billion.

Exports of goods and services from the US fell USD 1.5 billion from the previous month, or 0.7 percent, to USD 213.8 billion in June. Goods exports decreased USD 1.7 billion to USD 143.2 billion, mainly due to lower sales of passenger cars (down USD 0.9 billion), pharmaceutical preparations (down USD 0.6 billion), jewelry (down USD 0.4 billion), civilian aircraft engines (down USD 0.4 billion), and civilian aircraft (down USD 0.2 billion). Meanwhile, exports of services increased USD 0.2 billion to USD 70.6 billion in June.

Imports went up USD 1.6 billion, or 0.6 percent, to USD 260.2 billion in June, as goods imports rose USD 1.4 billion to USD 212.0 billion boosted by purchases of pharmaceutical preparations (up USD 1.5 billion) and crude oil (up USD 1.2 billion). Imports of capital goods, however, dropped USD 1.5 billion due to lower purchases of computers (down USD 0.8 billion) and telecommunications equipment (down USD 0.5 billion). Imports of services increased USD 0.2 billion to USD 48.1 billion in June.

The politically sensitive goods trade deficit with China rose 0.9 percent to USD 33.5 billion in June (vs USD 33.2 billion in May). Also, the trade gap with Mexico rose 10.5 percent to USD 7.4 billion (vs 6.7 billion in May) and that with Canada jumped 39.7 percent to USD 2.0 billion (vs USD 1.5 billion). Meanwhile, the trade deficit narrowed with the EU (USD 11.7 billion vs USD 13.4 billion) and with Japan (USD 5.3 billion vs USD 5.5 billion).

On a non-seasonally adjusted basis, exports fell to Canada (-2.6 percent) and Mexico (-2.2 percent), but rose to China (4.8 percent), the EU (1.4 percent) and Japan (1 percent). Imports grew from China (1.8 percent) and Mexico (0.7 percent), but fell from the EU (-3.1 percent), Japan (-1 percent) and Canada (-0.5 percent).

US Trade Deficit Widens Sharply in June

BEA | Joana Ferreira |
8/3/2018 12:56:54 PM