Covid Causalities: US Trade Deficit Continues to Increase

Ken Zino of AutoInformed.com on Growing US trade Deficit and lack of a Covid Response plan

The US  average goods and services deficit increased $3.1 billion to $61.3 billion for the three months ending in August.

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis say that the  US goods and services deficit was $67.1 billion in August, up $3.7 billion from $63.4 billion in July, revised. August exports were $171.9 billion, $3.6 billion more than July exports. August imports were $239.0 billion, $7.4 billion more than July imports. The August increase in the goods and services deficit reflected an increase in the goods deficit of $3.0 billion to $83.9 billion and a decrease in the services surplus of $0.7 billion to $16.8 billion. Year-to-date, the goods and services deficit increased $22.6 billion, or 5.7% from the same period in 2019. Exports decreased $296.1 billion or 17.6 percent. Imports decreased $273.5 billion or 13.1%.

Particularly worrisome for the Covid -Sick US economy were goods deficits with countries that effectively addressed the Covid-19 crisis with strong central government responses: In billions of dollars, with China ($26.4), European Union ($15.7), Mexico ($12.5), Germany ($4.6), Japan ($4.3), Italy ($2.6), France ($2.2), South Korea ($2.2), and Canada ($1.2).

Three-Month Moving Averages

The average goods and services deficit increased $3.1 billion to $61.3 billion for the three months ending in August.

  • Average exports increased $10.0 billion to $165.2 billion in August.
  • Average imports increased $13.1 billion to $226.6 billion in August.

Year-over-year, the average goods and services deficit increased $10.1 billion from the three months ending in August 2019.

  • Average exports decreased $44.8 billion from August 2019.
  • Average imports decreased $34.7 billion from August 2019.

Exports

Exports of goods increased $3.5 billion to $119.1 billion in August. Exports of goods on a Census basis increased $3.4 billion.

  • Industrial supplies and materials increased $3.9 billion.
    • Non-monetary gold increased $1.8 billion.
  • Foods, feeds, and beverages increased $1.1 billion.
    • Soybeans increased $1.0 billion.
  • Capital goods decreased $1.4 billion.
    • Semiconductors decreased $1.2 billion.
    • Net balance of payments adjustments increased $0.1 billion.

Exports of services increased $0.1 billion to $52.8 billion in August.

  • Other business services increased $0.2 billion.
  • Transport increased $0.1 billion.
  • Charges for the use of intellectual property increased $0.1 billion.
  • Travel decreased $0.2 billion.

Imports

Imports of goods increased $6.5 billion to $203.0 billion in August. Imports of goods on a Census basis increased $6.5 billion.

  • Consumer goods increased $3.8 billion.
    • Pharmaceutical preparations increased $2.7 billion.
  • Automotive vehicles, parts, and engines increased $1.7 billion.
    • Passenger cars increased $1.0 billion.
  • Other goods increased $1.1 billion.
  • Industrial supplies and materials decreased $1.5 billion.
  • Nonmonetary gold decreased $2.1 billion.
  • Finished metal shapes decreased $1.6 billion.
  • Crude oil increased 1.0 billion.

Net balance of payments adjustments increased less than $0.1 billion.

Imports of services increased $0.8 billion to $36.1 billion in August.

  • Travel increased $0.3 billion.
  • Transport increased $0.3 billion.

Real Goods in 2012 Dollars – Census Basis

The real goods deficit increased $1.2 billion to $92.3 billion in August.

  • Real exports of goods increased $3.5 billion to $136.7 billion.
  • Real imports of goods increased $4.7 billion to $229.0 billion.

Revisions

Revisions to July exports

  • Exports of goods were revised up $0.2 billion.
  • Exports of services were revised up less than $0.1 billion.

Revisions to July imports

  • Imports of goods were revised up $0.1 billion.
  • Imports of services were revised down less than $0.1 billion.

About Ken Zino

Ken Zino is an auto industry veteran with global experience in print, broadcast and electronic media. He has auto testing, marketing, public relations and communications expertise garnered while working in Asia, Europe and the U.S.
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