October 08, 2018

Goods and Services Trade Deficit

The U.S. Bureau of Economic Analysis indicated that, “The goods and services deficit was $53.2 billion in August, up $3.2 billion from $50 billion in July.” August exports ($209.4 billion), was less than exports in July by $1.7 billion, whereas $262.7 billion was recorded for imports in August which was $1.5 billion more than July imports.

The report mentioned that year-to date from the same period in 2017, there was a 8.6 percent increase in the goods and services deficit. As for exports and imports, they both increased by 8.4 percent to $129.6 billion and $160.6 billion, respectively.

Three-Month Moving Averages

Based on available seasonally adjusted data, for the three months ending in August, the average exports decreased $1.7 billion to $211.2 billion while average imports increased $1.8 billion to $260.9 billion.

In relation to export of goods, these consists of industrial supplies and materials; foods, feeds and beverages which all decreased by $2.4 billion and $1.2 billion, respectively. While, consumer goods increased by $1.6 billion. Additionally, export of services such as financial services and maintenance and repair services both increased by $0.1 billion.

As for imports of goods; automotive vehicles, parts and engines ($1 billion), passenger cars ($0.6 billion), truck, buses and special purpose vehicles ($0.4 billion), consumer goods ($0.9 billion) and cell phones and other households goods ($0.9 billion) all increased. However, imports of services including charges for the use of intellectual property decreased by $0.2 billion and as for other business services, this increased by $0.1 billion.

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