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Hockessin Community News
  • US TRADE DEFICIT GETS SMALLER

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  • Business Insider
    trade
    The U.S. trade deficit narrowed 3.6% to $40.4 billion in March from $41.9 billion in February.
    Economists were forecasting a $40.0 billion deficit.
    Exports increased to$193.9 billion from $190 billion.
    Imports climbed to $234.3 billion from $231.8 billion.
    "Overall, though, we are inclined to see these swings in exports and imports mostly as post-winter corrections; the trend in the core deficit is about flat," said Pantheon Macro's Ian Shepherdson.
    Including prior revisions, the net effect of this report on GDP is negative.
    "[T]he trade figures suggest that the second estimate, due at the end of this month, will show that GDP actually contracted slightly in first quarter," said Capital Economics' Paul Ashworth. "Overall, whether Q1 GDP expanded or contracted slightly is of little importance now. The monthly data clearly show a big resurgence in activity and employment over the past couple of months, confirming that the earlier weakness was weather-related."
    Here's some color from the BEA:

    Goods

    The February to March increase in exports of goods reflected increases in capital goods ($2.1 billion); industrial supplies and materials ($0.9 billion); automotive vehicles, parts, and engines ($0.6 billion); other goods ($0.3 billion); and foods, feeds, and beverages ($0.1 billion). A decrease occurred in consumer goods ($0.3 billion).

    The February to March increase in imports of goods reflected increases in consumer goods ($1.2 billion); foods, feeds, and beverages ($1.0 billion); capital goods ($0.9 billion); and other goods ($0.8 billion). A decrease occurred in industrial supplies and materials ($0.5 billion). Automotive vehicles, parts, and engines were virtually unchanged.

    The March 2013 to March 2014 increase in exports of goods reflected increases in capital goods ($2.8 billion); consumer goods ($1.5 billion); foods, feeds, and beverages ($1.5 billion); and automotive vehicles, parts, and engines ($0.6 billion). Decreases occurred in industrial supplies and materials ($0.6 billion) and other goods ($0.2 billion).

    The March 2013 to March 2014 increase in imports of goods reflected increases in consumer goods ($4.1 billion);  capital goods ($3.2 billion); automotive vehicles, parts, and engines ($1.6 billion); foods, feeds, and beverages ($1.0 billion); industrial supplies and materials ($0.8 billion); and other goods ($0.1 billion).

    Services

    Exports of services increased $0.2 billion from February to March. Increases in other private services ($0.2 billion), which includes items such as business, professional, and technical services, insurance services, and financial services, and in passenger fares ($0.1 billion) were partly offset by a decrease in travel ($0.1 billion). Changes in the other categories of services exports were relatively small.

    Imports of services decreased $0.7 billion from February to March. The decrease was more than accounted for by a decrease in royalties and license fees ($0.7 billion), which in February included payments for the rights to broadcast the 2014 Winter Olympic Games. Decreases in travel ($0.1 billion) and in passenger fares ($0.1 billion) also contributed. Partly offsetting these decreases were increases in other transportation ($0.2 billion), which includes freight and port services, and in other private services ($0.1 billion). Changes in the other categories of services imports were relatively small.

    The March 2013 to March 2014 increase in exports of services was $3.3 billion or 6.0 percent. The largest increases were in other private services ($2.0 billion), in travel ($0.7 billion), and in royalties and license fees ($0.6 billion). Within other private services, the largest increase was in business, professional, and technical services.

    The March 2013 to March 2014 increase in imports of services was $1.8 billion or 4.8 percent. The largest increases were in other private services ($1.5 billion) and in other transportation($0.2 billion). Within other private services, the largest increase was in business, professional,and technical services.

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