Q3 GDP Alert: US Trade Deficit Worse Than Expected As Exports, Goods Imports Drop

This could be a problem for the escape velocity believers: the US trade balance printed its biggest deficit since April at -$43.0bn (missing expectations of -$40.2bn) bn, and jumping 7.6% from $40 billion in August. This reflected a decrease in exports (but, but decoupling!?) though imports of goods also slid, suggesting not only is there slack in foreign demand for US goods and services, but the US manufacturing sector is also undergoing to a contractionary realignment. Someone please notify the (seasonally-adjusted) ISM that Q3 GDP estimates areabout to tumble on this latest non-confirmation of hopium.

Some of the highlights:

  • *U.S. TRADE DEFICIT WITH CHINA HIGHEST EVER ON RECORD IMPORTS
  • *U.S. IMPORTS LITTLE CHANGED AT $238.6 BLN ON CHEAPER OIL
  • *U.S. EXPORTS DROP 1.5% TO $195.6 BLN ON OIL, CAPITAL GOODS
  • *U.S. IMPORTS OF PETROLEUM WERE LOWEST SINCE NOVEMBER 2009

 

 

And the details:

The U.S. monthly international trade deficit increased in September 2014 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit increased from $40.0 billion in August (revised) to $43.0 billion in September, mainly reflecting a decrease in exports. The previously published August deficit was $40.1 billion. The goods deficit increased $2.4 billion from August to $62.7 billion in September; the services surplus decreased $0.6 billion from August to $19.6 billion in September.

Exports

Exports of goods and services decreased $3.0 billion in September to $195.6 billion, mostly reflecting a decrease in exports of goods. Exports of services also decreased.

  • The decrease in exports of goods was more than accounted for by decreases in industrial supplies and materials, in capital goods, and in consumer goods. An increase in foods, feeds, and beverages was partly offsetting.
  • The decrease in exports of services mostly reflected decreases in travel (for all purposes including education) and in transport, which includes freight and port services and passenger fares. Changes in the other categories of services exports were relatively small and nearly offsetting.

Imports

Imports of goods and services increased $0.1 billion in September to $238.6 billion, reflecting an increase in imports of services. Imports of goods decreased.

  • The increase in imports of services mostly reflected an increase in transport. Changes in the other categories of services imports were relatively small.
  • The decrease in imports of goods was more than accounted for by decreases in industrial supplies and materials, in capital goods, and in automotive vehicles, parts, and engines. An increase in consumer goods was partly offsetting.

Goods by geographic area (seasonally adjusted, Census basis)

  • The goods deficit with China increased from $28.5 billion in August to $31.2 billion in September. Exports decreased $0.1 billion to $9.8 billion, and imports increased $2.6 billion to $41.0 billion.
  • The goods deficit with Canada increased from $2.7 billion in August to $4.0 billion in September. Exports decreased $0.6 billion to $26.3 billion, and imports increased $0.7 billion to $30.3 billion.
  • The goods deficit with Germany decreased from $7.2 billion in August to $6.2 billion in September. Exports increased $0.1 billion to $4.2 billion, and imports decreased $0.8 billion to $10.4 billion.