US Trade Deficit Widens in August

The US trade deficit widened to USD 54.9 billion in August 2019 from USD 54.0 billion in the previous month and compared to market expectations of USD 54.5 billion. Exports rose 0.2 percent and imports increased at a faster 0.5 percent.

Exports from the US rose USD 0.5 billion from the previous month to USD 207.9 billion in August. Goods exports increased USD 0.4 billion to USD 138.6 billion, lifted by exports of industrial supplies and materials (up USD 1.5 billion) such as fuel oil and nonmonetary gold; and foods, feeds, and beverages (up USD 0.5 billion) on the back of soybeans. But capital goods exports fell USD 1.4 billion, with aircraft shipments declining USD 1.3 billion. Exports of services, including financial services and other business services, edged up USD 0.1 billion to USD 69.3 billion in August.

On a non seasonally adjusted basis, goods exports increased to China (8.0 percent), Canada (8.0 percent), the EU (8.2 percent) and Brazil (4.2 percent), but fell to Japan (-5.6 percent) and Mexico (-0.2 percent).

Imports to the US advanced USD 1.3 billion to USD 262.8 billion. Goods imports grew USD 1.2 billion to USD 213.0 billion boosted by a USD 1.9 billion surge in shipments of capital goods which reached the highest on record. In addition, consumer goods imports were up USD 1.9 billion, led by purchases of cell phones, while industrial supplies and materials imports dropped USD 1.5 billion. Imports of services, such as insurance services, rose USD 0.1 billion to USD 49.8 billion in August.

On a non seasonally adjusted basis, goods imports increased from Mexico (3.1 percent), but declined from China (-0.8 percent), Canada (-0.5 percent), the EU (-5.8 percent), Japan (-3.5 percent), and Brazil (-21.7 percent).

The politically sensitive goods trade deficit with China decreased 3.1 percent to USD 31.8 billion in August from USD 32.8 billion in July; while that with the EU narrowed to USD 15.3 billion from a record high of USD 20.1 billion. Also, the trade deficit shrank with Canada (USD 1.4 billion from USD 3.4 billion) and Japan (USD 6.2 billion from USD 6.3 billion), but rose with Mexico (USD 9.0 billion from USD 8.0 billion).

US Trade Deficit Widens in August

US Census Bureau | Joana Ferreira |
10/4/2019 12:57:24 PM