September 3, 2020
Goods and Services Trade Deficit
The U.S. Bureau of Economic Analysis indicated that, “the goods and services deficit was $63.6 billion in July, up $10.1 billion from $53.5 billion in June, revised.”
July exports ($168.1 billion), were more than June exports by $12.6 billion, whereas, July imports amounted to $231.7 billion which was $22.7 billion more than June imports.
For the period under review compared with that of 2019, there was a 1.8% or $6.4 billion increase in the goods and services deficit. Moreover, exports fell $257.8 billion or 17.5%. Imports also fell $251.3 billion or 13.8%.
Three-Month Moving Averages
For the three months ended in July, the average goods and services deficit rose $3.3 billion to $58.3 billion. This was due to a $6.9 billion increase in average exports to $155.1 billion in July and a $10.2 billion increase in average imports to $213.4 billion in July.
In relation to export of goods, these consists of capital goods, consumer goods, automotive vehicles parts, and engines and Industrial supplies and materials which all increased by $2.5 billion, $2.6 billion, $3.8 billion and $2.5 billion, respectively. Additionally, export of services rose by $0.4 billion to $52.6 billion in July. Of the services exported, other business services increased $0.3 billion, transport climbed $0.3 billion, charges for the use of intellectual property increased $0.1 billion while travel fell $0.4 billion.
As for imports of goods; capital goods, consumer goods, automotive vehicles, parts, and engines and industrial supplies and materials, all increased $4.1 billion, $3.5 billion, $7.7 billion and $4.4 billion, respectively. Besides, imports of services increased by $1.2 billion to $35.3 billion in July. Of this, transport increased $0.5 billion, travel rose $0.3 billion, charges for the use of intellectual property increased $0.1 billion and insurance services climbed $0.1 billion.
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