• Trade Deficit Increases to $43 billion in September

    Trade Deficit Increases to $43 billion in September

    According to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau, the U.S. trade deficit increased to $43 billion in September, up from $40 billion in August. U.S. exports decreased by $3 billion to $195.6 billion while imports increased slightly from August to $238.7 billion. Compared to September 2013, the trade deficit increased $0.8 billion. However, “exports were up $5.3 billion, or 2.8 percent, and imports were up $6.1 billion, or 2.6 percent”.

    U.S. exports of industrial supplies and materials, capital goods, consumer goods, other goods, and automotive vehicles, parts, and engines decreased. Imports of foods, feeds, and beverages increased. U.S. imports of industrial supplies and materials, capital goods, and automotive vehicles, parts, and engines decreased while imports of consumer goods, other goods, and foods, feeds, and beverages increased.

    Compared to September 2013, U.S. exports of capital goods, consumer goods, industrial supplies and materials, and automotive vehicles, parts, and engines increased while exports of foods, feeds, and beverages decreased. For the same time period, U.S. imports of capital goods, consumer goods, foods, feeds, and beverages, other goods, and automotive vehicles, parts, and engines increased while imports of industrial supplies and materials decreased.

    The U.S. recorded a trade surplus with Hong Kong and Singapore. A trade deficit was recorded with China, European Union, Germany, Japan, Mexico, Canada, OPEC, Ireland, South Korea, India, Saudi Arabia, and Venezuela.

    According to Bloomberg, “Exports decreased the most since February, reflecting slowing demand from Europe, Latin America, and Japan”. “This is the first sign that American companies’ international sales will suffer as economies from Europe to emerging markets struggle, indicating trade will provide less support for expansion.”

    Sources:

    Bloomberg: Trade Deficit Widens to Four-Month High as U.S. Exports Drop

    U.S. Census Bureau & U.S. Bureau of Economic Analysis