US Trade Deficit Shrinks in August


US trade gap unexpectedly decreased in August to the lowest level in seven months as exports reached a record high.

August exports of $198.5 billion and imports of $238.6 billion resulted in a goods and services deficit of $40.1 billion, down from $40.3 billion in July, revised. August exports were $0.4 billion more than July exports of $198.0 billion. August imports were $0.2 billion more than July imports of $238.3 billion.

In August, the goods deficit increased $0.1 billion from July to $59.9 billion, and the services surplus increased $0.3 billion from July to $19.8 billion. Exports of goods increased $0.1 billion to $138.8 billion, and imports of goods increased $0.1 billion to $198.7 billion. Exports of services increased $0.4 billion to $59.6 billion, and imports of services increased $0.1 billion to $39.9 billion.

The goods and services deficit increased $0.6 billion from August 2013 to August 2014. Exports were up $7.9 billion, or 4.1 percent, and imports were up $8.4 billion, or 3.7 percent.

The July to August increase in exports of goods reflected increases in capital goods ($1.0 billion); consumer goods ($0.8 billion); industrial supplies and materials ($0.7 billion); and other goods ($0.4 billion). Decreases occurred in automotive vehicles, parts, and engines ($1.7 billion) and foods, feeds, and beverages ($0.6 billion).

The July to August increase in imports of goods reflected increases in capital goods ($1.8 billion) and consumer goods ($0.7 billion). Decreases occurred in automotive vehicles, parts, and engines ($1.4 billion); other goods ($0.5 billion); foods, feeds, and beverages ($0.3 billion); and industrial supplies and materials ($0.2 billion).

The August 2013 to August 2014 increase in exports of goods reflected increases in capital goods ($2.4 billion); consumer goods ($1.6 billion); industrial supplies and materials ($1.4 billion); other goods ($0.8 billion); and automotive vehicles, parts, and engines ($0.5 billion). Foods, feeds, and beverages were virtually unchanged.

The August 2013 to August 2014 increase in imports of goods reflected increases in capital goods ($4.1 billion); consumer goods ($2.0 billion); automotive vehicles, parts, and engines ($1.4 billion); foods, feeds, and beverages ($0.9 billion); and other goods ($0.1 billion). A decrease occurred in industrial supplies and materials ($1.0 billion).

The August figures show surpluses, in billions of dollars, with Hong Kong $2.8 ($2.1 for July), Australia $1.4 ($1.6), Singapore $1.0 ($0.9), and Brazil $1.0 ($0.5). Deficits were recorded, in billions of dollars, with China $30.2 ($30.9), European Union $11.0 ($13.2), Germany $7.1 ($6.4), Japan $4.7 ($6.2), OPEC $3.2 ($6.2), Canada $2.3 ($3.0), Ireland $2.2 ($1.8), India $1.9 ($2.1), South Korea $1.8 ($2.5), Saudi Arabia $1.5 ($2.8), and Venezuela $1.3 ($2.2).

Advanced technology products exports were $28.9 billion in August and imports were $33.4 billion, resulting in a deficit of $4.5 billion. August exports were $1.7 billion more than the $27.1 billion in July, while August imports were $0.7 billion less than the $34.0 billion in July.

US Trade Deficit Shrinks in August


US Department of Commerce | anna@tradingeconomics.com
10/3/2014 1:47:56 PM