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Trade Deficit Up Again as Import Growth Outpaces Exports

Thursday, October 06, 2016
Sandler, Travis & Rosenberg Trade Report

Trade statistics released Oct. 5 by the Department of Commerce show that the U.S. monthly trade deficit in goods and services rose 3.0 percent in August to $40.7 billion after a 12.3 percent drop in July. Exports were up 0.8 percent to $187.9 billion while imports grew 1.2 percent to $228.6 billion. For the year to date the deficit is down 1.3 percent from 2015 due to a 4.1 percent fall in exports and a 3.6 percent drop in imports.

The goods deficit edged down to $60.1 billion in August. Imports of goods were up 0.6 percent to $185.6 billion, including increases of $600 million in civilian aircraft and $300 million in telecommunications equipment along with a $1.4 billion decrease in non-monetary gold. Exports of goods were up 1.0 percent to $125.3 billion, including increases of $900 million in non-monetary gold and $400 million in automotive vehicles, parts, and engines along with an $800 million decrease in civilian aircraft.

The services surplus tumbled 5.8 percent to $19.6 billion. Imports were up 3.6 percent to $43.0 billion (largely due to payments for the rights to broadcast the 2016 summer Olympic Games) and exports rose 0.5 percent to $62.5 billion.

Country/region

Deficit

% Change

Surplus

% Change

China

$29.2 billion

-0.7

European Union

$11.8 billion

+4.2

Japan

$5.7 billion

-5.0

   

Germany

$5.3 billion

Unchanged

   

Mexico

$5.2 billion

Unchanged

 

South Korea

$2.5 billion

+8.7

Italy

$2.4 billion

+333.

France

$2.0 billion

+100

   

India

$1.9 billion

-13.6

Taiwan

$1.5 billion

+25

   

Canada

$1.1 billion

+175

Hong Kong

$2.4 billion

+20.0

South/Central America

$1.7 billion

-34.6

Saudi Arabia

   

$0.8 billion

Shift from $0.2 billion deficit

Singapore

$0.7 billion

-22.2

United Kingdom

$0.4 billion

-20.0

Brazil

$0.2 billion

-66.6

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