US Trade Deficit Rises to 10-Month High in June


The trade gap in the United States widened to USD 44.5 billion in June of 2016 from a downwardly revised USD 40.96 billion deficit in the previous month. Figures came above market expectations of a USD 43.1 billion shortfall as imports rose 1.9 percent due to higher oil prices and rising domestic demand while exports edged up only 0.3 percent.

The widening of the goods and services deficit reflects a higher goods gap (up $3.8 billion to $66 billion) and an increase services surplus (up $0.3 billion to $21.5 billion).

Total exports edged up 0.3 percent to $183.2 billion, following a 0.1 percent drop in the previous month. Exports of goods increased $0.5 billion to $120.4 billion: foods, feeds, and beverages rose $0.6 billion; corn went up $0.3 billion; wheat increased $0.2 billion; capital goods grew $0.3 billion; civilian aircraft increased $0.3 billion; consumer goods rose $0.4 billion. Exports of services increased $0.1 billion to $62.8 billion in June: travel (for all purposes including education) rose $0.1 billion and financial services went up $0.1 billion.

Sales to the European Union jumped 7.8 percent, with those to the UK up 18.2 percent. Exports to Mexico rose 2.7 percent, China increased 3.6 percent and those to Canada went up 4.4 percent. In contrast, sales to Japan declined 1.1 percent. 

Total imports rose 1.9 percent to $227.7 billion, following a 1.6 percent growth in May. Imports of goods increased $4.4 billion to $186.4 billion: industrial supplies and materials rose $2.3 billion; crude oil increased $1.4 billion; consumer goods were up $1.9 billion and capital goods increased $1.0 billion. Imports of services declined $0.2 billion to $41.2 billion in June.

Imports from China rose 2.8 percent, those from Canada went up 5.3 percent and from the European Union purchases grew 3.4 percent.  

Year-to-date, the goods and services deficit decreased $5.8 billion, or 2.3 percent, from the same period in 2015. Exports decreased $54.2 billion or 4.7 percent. Imports decreased $60.0 billion or 4.3 percent.

BEA | Yekaterina Guchshina | yekaterina@tradingeconomics.com
8/5/2016 2:31:59 PM