U.S. trade deficit rose by $3.7 billion in August

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced October 14 that total August exports of $153.9 billion and imports of $200.2 billion resulted in a goods and services deficit of $46.3 billion, up from $42.6 billion in July, revised. August exports were $300 million more than July exports of $153.5 billion. August imports were $4.1 billion more than July imports of $196.1 billion.

In August, the goods deficit increased $3.9 billion from July to $59.0 billion and the services surplus increased $100 million to $12.6 billion. Exports of goods were virtually unchanged at $107.7 billion and imports of goods increased $3.9 billion to $166.7 billion. Exports of services increased $300 million to $46.2 billion and imports of services increased $200 million to $33.5 billion.

The goods and services deficit increased $15.3 billion from August 2009 to August 2010. Exports were up $23.5 billion, or 18.0 percent and imports were up $38.8 billion, or 24.0 percent.

Goods (Census basis)
The July to August decrease in exports of goods reflected decreases in capital goods ($1.5 billion) and other goods ($600 million). Increases occurred in foods, feeds and beverages ($1.2 billion); industrial supplies and materials ($600 million); and automotive vehicles, parts and engines ($100 million). Consumer goods were virtually unchanged.

The July to August increase in imports of goods reflected increases in consumer goods ($1.4 billion); capital goods ($900 million); automotive vehicles, parts and engines ($700 million); other goods ($400 million); industrial supplies and materials ($200 million); and foods, feeds and beverages ($100 million).

The August 2009 to August 2010 increase in exports of goods reflected increases in industrial supplies and materials ($7.2 billion); capital goods ($6.4 billion); automotive vehicles, parts and engines ($2.0 billion); consumer goods ($1.3 billion); other goods ($1.2 billion); and foods, feeds and beverages ($1.0 billion).

The August 2009 to August 2010 increase in imports of goods reflected increases in industrial supplies and materials ($12.0 billion); capital goods ($8.3 billion); consumer goods ($7.4 billion); automotive vehicles, parts and engines ($6.1 billion); foods, feeds and beverages ($1.1 billion); and other goods ($500 million).

Services
Services exports increased $300 million from July to August. The increase was mostly accounted for by increases in other private services (which includes items such as business, professional and technical services, insurance services and financial services) and travel. Changes in the other categories of services exports were small.

Services imports increased $200 million from July to August. The increase was more than accounted for by increases in travel, other transportation (which includes freight and port services) and other private services. Changes in the other categories of services imports were small.                                                           

The August 2009 to August 2010 increase in exports of services was $4.4 billion. The largest increases were in other private services ($1.5 billion), royalties and license fees ($1.3 billion) and travel ($1.1 billion). Within other private services, the largest increase was in business, professional and technical services.

The August 2009 to August 2010 increase in imports of services was $2.8 billion. The largest increases were in other transportation ($1.2 billion), other private services ($600 million) and royalties and license fees ($400 million). Within other private services, the largest increase was in business, professional and technical services.

Goods and Services Moving Average
For the three months ending in August, exports of goods and services averaged $152.7 billion, while imports of goods and services averaged $198.9 billion, resulting in an average trade deficit of $46.2 billion. For the three months ending in July, the average trade deficit was $44.7 billion, reflecting average exports of $152.2 billion and average imports of $196.9 billion.