Covid Causalities: US Trade Deficit Continues to Increase

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.