The trade deficit narrowed to $67.4 billion in August (consensus -$67.9 billion) from an upwardly revised -$70.5 billion (from -$70.6 billion) in July. August exports were $258.9 billion, $0.7 billion less than July exports. August imports were $326.3 billion, $3.7 billion less than July imports. The goods deficit with China widened to $33.5 billion from $32.9 billion in July.
Highlights
- International trade deficit for August 2022 -$67.4 billion vs -67.9 estimate from an upwardly revised -$70.5 billion (from -$70.6 billion) in July
- Exports of industrial supplies and materials decreased $2.2 billion.
- Exports of automotive vehicles, parts, and engines decreased $1.1 billion.
- Imports of industrial supplies and materials decreased $4.7 billion.
- Imports of capital goods decreased $1.1 billion, with semiconductors decreasing $0.5 billion.
- Imports of automotive vehicles, parts, and engines increased $1.1 billion.
- The goods deficit with China widened to $33.5 billion from $32.9 billion in July.
- The real trade deficit narrowed to $98.5 billion in August from -$103.1 billion in July, leaving the Q3 average 12.5% below the Q2 average.
Deficit Source by Country and Product
China remains the single largest source of the U.S. trade deficit, the next-largest single-country trade deficit posted by the U.S. is with Mexico,
Highlights
- The deficit with Japan decreased $1.9 billion to $3.6 billion in August. Exports increased
- $1.3 billion to $7.8 billion and imports decreased $0.6 billion to $11.4 billion
- The deficit with Mexico decreased $1.9 billion to $9.8 billion in August. Exports increased $1.3 billion to $29.0 billion and imports decreased $0.5 billion to $38.8 billion.
- The balance with Switzerland shifted from a surplus of $2.1 billion in July to a deficit of $0.5 billion in August. Exports decreased $2.2 billion to $3.5 billion and imports increased $0.3 billion to $4.0 billion.
Surpluses with, in billions of dollars,
South and Central America ($7.1), Netherlands ($4.2), Hong Kong ($2.3), Singapore ($1.7), United Kingdom ($1.2), Australia ($1.1), Brazil ($1.0), and Belgium ($0.5)
Deficits with, in billions of dollars,
China ($33.5), European Union ($13.5), Mexico ($9.8), Vietnam ($9.6), Canada ($7.4), Ireland ($5.2), Germany ($5.0), Taiwan ($4.0), Italy ($4.0), Japan ($3.6), South Korea ($3.1), India ($3.1), Malaysia ($2.5), France ($0.9), Israel ($0.6), Saudi Arabia ($0.6), and Switzerland ($0.5).
Exports
Exports of goods decreased $0.7 billion to $182.5 billion in August
Exports of goods on a Census basis decreased $1.3 billion.
• Industrial supplies and materials decreased $2.2 billion.
o Nonmonetary gold decreased $2.0 billion.
o Crude oil decreased $1.0 billion.
o Natural gas increased $1.4 billion.
• Automotive vehicles, parts, and engines decreased $1.1 billion.
o Passenger cars decreased $1.1 billion.
• Consumer goods increased $1.3 billion.
o Pharmaceutical preparations increased $0.8 billion.
Net balance of payments adjustments increased $0.6 billion.
Exports of services decreased less than $0.1 billion to $76.4 billion in August.
• Travel decreased $0.3 billion.
• Other business services increased $0.2 billion.
• Financial services increased $0.1 billion.
Imports
Imports of goods decreased $4.1 billion to $270.1 billion in August
Imports of goods on a Census basis decreased $4.1billion.
Industrial supplies and materials decreased $4.7 billion.
o Crude oil decreased $2.7 billion.
o Fuel oil decreased $0.7 billion.
Capital goods decreased $1.1 billion.
o Semiconductors decreased $0.5 billion
o Civilian aircraft decreased $0.3 billion.
o Computer accessories decreased $0.3 billion.
• Automotive vehicles, parts, and engines increased $1.1 billion.
o Passenger cars increased $1.6 billion.
Net balance of payments adjustments increased less than $0.1 billion.
Imports of services increased $0.4 billion to $56.2 billion in August.
• Travel increased $0.3 billion.
• Charges for the use of intellectual property increased $0.1 billion
Source: bea
From The Traders Community News Desk