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Friday, March 29, 2024
HomeNewsEconomyWeaker Exports Fuel Wider than Expected U.S. Trade Deficit

Weaker Exports Fuel Wider than Expected U.S. Trade Deficit

Cargo containers sit idle at the Port of Los Angeles as a back-log of over 30 container ships sit anchored outside the Port in Los Angeles, California, February 18, 2015. (Photo: Reuters)
Cargo containers sit idle at the Port of Los Angeles as a back-log of over 30 container ships sit anchored outside the Port in Los Angeles, California, February 18, 2015. (Photo: Reuters)

Cargo containers sit idle at the Port of Los Angeles as a back-log of over 30 container ships sit anchored outside the Port in Los Angeles, California, February 18, 2015. (Photo: Reuters)

The U.S. trade deficit came in at $48.7 billion in October, up $3.8 billion from $44.9 billion in September. The U.S. Census Bureau and the U.S. Bureau of Economic Analysis (BEA) through the Department of Commerce, said October exports were $195.9 billion, down less than$0.1 billion from September exports.

While the report is not favorable for fourth-quarter (4Q) gross domestic product (GDP), it doesn’t at all derail what has been solid economic data and projections for the year.

October imports were $244.6 billion, $3.8 billion more than September imports.The October increase in the goods and services deficit reflected an increase in the goods deficit of $3.8 billion to $69.1 billion and a decrease in the services surplus of less than $0.1 billion to $20.3 billion.

Year-to-date, the goods and services deficit increased $49.1 billion, or 11.9%, from the same period in 2016. Exports increased $97.5 billion or 5.3%. Imports increased $146.6 billion or 6.5 percent.

Looking at exports of capital goods — which are the largest category — the decline of $1.2 billion to $43.9 billion reflect a $1.1 billion drop in aircraft. However, the data point to stronger aircraft exports in future reports. Exports for both vehicles, at $12.6 billion, and consumer goods, at $16.3 billion, both declined.

The politically-sensitive trade gap with China widened $600 million to $35.2 billion, while the trade gap with Japan widened by $1.6 billion to $6.4 billion. The gap with the European Union (EU) widened by $2.3 billion to $13.7 billion. The gap with Mexico increased $900 million to $6.6 billion; Canada widened by $1.5 billion to $1.8 billion.

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PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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