Export Surge Knocks Trade Deficit Back

The U.S. trade deficit in goods and services plummeted 17.6 percent in October to $67.1 billion, the largest decline in more than six years. According to statistics from the Department of Commerce, imports edged up 0.9 percent to a record $290.7 billion while exports jumped 8.1 percent to $223.6 billion, also an all-time high and the largest monthly increase in 13 years. However, the year-to-date deficit was up 29.7 percent from October 2020 amid increases of 17.9 percent for exports and 20.7 percent for imports.

The deficit in goods trade fell 14.3 percent in October to $83.9 billion. Imports of goods rose 0.7 percent to $242.7 billion, including increases of $1.1 billion in passenger cars, $700 million in gem diamonds, and $600 million in cell phones and other household goods along with decreases of $1.2 billion in organic chemicals and $600 million each in fuel oil, other petroleum products, and semiconductors. Exports of goods were up 11.1 percent to $158.7 billion, including increases of $1.8 billion in soybeans, $1.5 billion in automotive vehicles, parts, and engines, and $1.2 billion in crude oil.

The services surplus saw another gain, up 1.8 percent to $16.8 billion, with imports up 1.5 percent to $48.1 billion and exports up 1.6 percent to $64.9 billion.

Country/region	Deficit	% Change	Surplus	% Change
China	$28.3 billion	-10.2
European Union	$16.6 billion	-11.2
Mexico	$9.7 billion	+10.2
Germany	$5.7 billion	0
Taiwan	$4.3 billion	+13.2
Japan	$3.6 billion	-28.0
Italy	$3.4 billion	-2.9
Canada	$3.3 billion	-29.8
India	$3.1 billion	+19.2
South Korea	$2.7 billion	-28.9
France	$1.4 billion	-22.2
Saudi Arabia	$0.1 billion	-80
South/Central America			$4.5 billion	+18.4
Hong Kong			$2.6 billion	+73.3
Brazil			$1.3 billion	+8.3
United Kingdom			$1.0 billion	Shift from $0.1 billion deficit
Singapore			$0.5 billion	Shift from <$0.1 billion deficit

 

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