US Trade Deficit Grows in 2022 as Economy Recovers

Ken Zino of AutoInformed.com on US Trade Deficit Grows in December 2022 as Economy Recovers

The US remains a healthy major global player in trade. Click to enlarge.

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $67.4 billion in December, up $6.4 billion from $61.0 billion in November, revised. December exports were $250.2 billion, $2.2 billion less than November exports. December imports were $317.6 billion, $4.2 billion more than November imports. The December increase in the goods and services deficit showed an increase in the goods deficit of $7.4 billion to $90.6 billion and an increase in the services surplus of $1.0 billion to $23.2 billion.

For 2022, the goods and services deficit increased $103.0 billion, or 12.2% from 2021. This is the largest deficit on record as the economy continued to recover as consumers and businesses purchased higher amounts of machinery, car components, industrial supplies, medicines among other things. Exports increased $453.1 billion or 17.7% . Imports increased $556.1 billion or 16.3% helped by the purchasing of a strong dollar.

However, the average goods and services deficit decreased $2.1 billion to $68.6 billion for the three months ending in December. Average exports decreased $2.6 billion to $253.0 billion in December. Average imports decreased $4.7 billion to $321.6 billion in December.

Ken Zino of AutoInformed.com on US Trade Deficit Grows in 2022 as Economy Recovers

Click to enlarge.

Year-over-year, the average goods and services deficit decreased $6.4 billion from the three months ending in December 2021. • Average exports increased $24.2 billion from December 2021. Average imports increased $17.8 billion from December 2021. For the year of 2022, automotive vehicles, parts, and engines increased $14.3 billion as the US auto industry continues to sort out supply chain challenges. Nevertheless, the trade deficit with China grew 8.3% annually to $382.9 billion, the second highest total on record.  Companies are shifting purchases of goods with Mexico, Canada, India, South Korea, Vietnam and Taiwan in the initial moves away from the reliance on China sources of foreign products.

Exports

Exports of goods decreased $2.9 billion to $168.1 billion in December. Exports of goods on a Census basis decreased $2.8 billion.

  • Industrial supplies and materials decreased $3.1 billion.
  • Nonmonetary gold decreased $1.6 billion. o
  • Crude oil decreased $0.8 billion. o
  • Other petroleum products decreased $0.6 billion.
  • Consumer goods decreased $1.0 billion.
  • Jewelry decreased $0.4 billion.
  • Pharmaceutical preparations decreased $0.2 billion.
  • Foods, feeds, and beverages increased $0.7 billion.
  • Net balance of payments adjustments decreased $0.1 billion.
  • Exports of services increased $0.7 billion to $82.0 billion in December. •
  • Travel increased $0.4 billion.
  • Transport increased $0.1 billion.
  • Other business services increased $0.1 billion.

Imports

Imports of goods increased $4.5 billion to $258.8 billion in December. Imports of goods on a Census basis increased $4.8 billion.

  • Consumer goods increased $4.1 billion.
  • Cell phones and other household goods increased $3.5 billion.
  • Automotive vehicles, parts, and engines increased $2.9 billion.
  • Passenger cars increased $1.6 billion.
  • Other automotive parts and accessories increased $0.7 billion.
  • Industrial supplies and materials decreased $2.7 billion.
  • Fuel oil decreased $0.8 billion.
  • Organic chemicals decreased $0.8 billion.
  • Net balance of payments adjustments decreased $0.3 billion. Imports of services decreased $0.3 billion to $58.8 billion in December.
  • Travel decreased $0.5 billion.
  • Transport decreased $0.1 billion.
  • Charges for the use of intellectual property increased $0.2 billion.
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