Trade decicit increased in August on rebounding imports

Source: census.gov
 The trade deficit widened to $46.3 billion in August from $42.6 billion in July. Imports rebounded 2.1% in the month and exports edged 0.2% higher. The real trade gap widened to $51.2 billion in August from $47.3 billion in July. For goods, the deficit was $59.0 billion in August, up from $55.1 billion in July. For services, the surplus was $12.6 billion in August, up from $12.5 billion in July.

The US has a trade surplus in services and at least in this, it is growing, which considering the poor showing of the dollar makes sense.  The trade gap in goods widened (pointing to a modest drag of around a half percentage point on third-quarter GDP growth) as imports rebounded 2.1% in August.

Rising imports are not normally a sign of slowing demand growth, nor of an economy headed towards a double-dip. Over the last three months, imports of industrial supplies, autos, consumer goods, and capital goods have posted strong gains. Meanwhile, the growth of exports appears to have moderated over the latest three months—although year-over-year gains remain fairly strong and broad-based by destination (with particularly robust gains to Brazil and China).

More

Bureau of Economic Accounts release
Bureau of the Census Release

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