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US Trade Deficit Worse Than Expected As Auto Exports Tumble
As Chinese exports crashed in January (and imports were extremely weak), one could be forgiven for expecting the US trade deficit to be more extreme than the tumble it experienced in December... but no. The US Trade Deficit printed $41.8bn, slightly worse than the $41.1bn expectation but 'better' than the adjusted $45.6 billion. Imports dropped 3.9% in January and Exports fell 2.9% but YoY imports fell 0.17% and exports fell 1.75% - the last time both fell YoY was November 2008. This is the 2nd month in a row of worse than expected deficits (and 4th of last 5). The shift is led by big drops in Food & Beverage (-9.1%) and Auto (-7.0%) exports and an 11.3% plunge in Industrial Supplies imports.
4th of last 5 month bigger than expected trade deficit...
As BEA notes:
Exports
Exports of goods and services decreased $1.5 billion in December to $194.9 billion, reflecting a decrease in exports of goods. Exports of services increased.
- The decrease in exports of goods was more than accounted for by a decrease in industrial supplies and materials. An increase in capital goods was partly offsetting.
- The increase in exports of services reflected increases in transport, which includes freight and port services and passenger fares, in financial services, and in travel (for all purposes including education).
Imports
Imports of goods and services increased $5.3 billion in December to $241.4 billion, mostly reflecting an increase in imports of goods. Imports of services also increased.
- The increase in imports of goods mostly reflected increases in industrial supplies and materials and in automotive vehicles, parts, and engines.
- The increase in imports of services mostly reflected increases in transport and in travel (for all purposes including education).
Goods by geographic area (seasonally adjusted, Census basis)
- The goods deficit with Canada increased from $1.6 billion in November (revised) to $3.3 billion in December. Exports decreased $0.8 billion to $25.8 billion and imports increased $0.9 billion to $29.0 billion.
- The goods surplus with South and Central America decreased from $4.3 billion in November to $2.6 billion in December. Exports decreased $0.7 billion to $14.8 billion and imports increased $1.0 billion to $12.2 billion.
- The goods deficit with Germany decreased from $6.3 billion in November to $5.6 billion in December. Exports increased $0.1 billion to $3.9 billion and imports decreased $0.6 billion to $9.6 billion
* * *
And finally, given the epic collapse in Chinese data, it seems odd that The BEA reports, the deficit with China increased $2.7 billion to $83.4 billion in the fourth quarter. Exports increased $3.5 billion to $43.8 billion and imports increased $6.2 billion to $127.2 billion.
Oddly it appears the US data is adjusting back to Chinese data...
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Yes, but from a glass half-full perspective...
I got nothin'.
Go figure. You raise your price over 20% by having the dollar go up (plus another 1% today) and people stop buying your products. Who would have thought it?
intended or unintended. or out of control. swissy tyme?!
Yeah I would have stopped buying them after they didn't pass the test of time, like 3 decades ago.
so this is a positive for stock...NO????
The USDis the new Highlander.
OT:
USA, USA, USA oh wait.
http://rt.com/usa/238257-french-submarine-us-carrier/
Who wants to buy those ugly over-priced things on wheels that look like they were designed by a 13 year old boy who plays Walmart brand sci-fi video games, and that get recalled every month?
The Middle East and Asia (you know, places where they make or mine the dumb shit Americans buy and put in their over-priced things on wheels).
The world is starting to clam up...so to speak....the strong dollar is not going to help at all either...
oil down, trade deficit up, that's healthy.
maybe it is just an after xmas shelf restocking party and next month won't be so bad but who cares, not the gubbermint or fed, that's for sure.
Maybe we should sell an aircraft carrier to Russia or China. That would boost GDP.
We need subprime loans for Mr Panos!
What would Panos drive? I'll go with a Ford Mustang...light blue with a white racing stripe!
Found On Road Dead
Fixed Or Repaired Daily.
First On Race Day
Clearly the answer is to offer subprime auto loans to foreign car buyers.....well, that was simple.
Exports to Ukraine and Poland will be increasing together with IOUs deposited at the Fed
They just had the Presidents man on labor on CNBC..he said exports were up....where is he getting his info????
We should start a trade war....that always solved things....like printing lots of money for gamblers. We are on course to do EVERY FUCKING THING WRONG....according to every history of geo-politics, economic and finance!!! We are a triple threat..... Get ready to write the history books of the obvious failures!!! Like no one saw repcussions of the Crusades, the 1929 crash followed by the trade war depression, WWII, DOTCOM CRASH, HOUSING BUBBLE BURST, Debt Bubble. We are going to wrap all of these into the mother of one giant cluster fuck!
The US exports things??