Posted on 11/13/2003 6:42:13 AM PST by Starwind
UPDATE - Record imports widen U.S. trade gap in September
Thursday November 13, 8:57 am ET
WASHINGTON, Nov 13 (Reuters) - The U.S. trade deficit widened in September to $41.3 billion, as the strengthening U.S. economy propelled imports from China and the rest of the world to record levels, the government said on Thursday.
The trade gap was slightly larger than the mid-point estimate of $40.5 billion from analysts surveyed before the report. The deficit widened for the first time in six months as surging imports outstripped the biggest increase in exports in over three years, the Commerce Department said.
Imports of goods and services totaled $127.4 billion. The 3.3 percent jump was led by higher imports of cars, auto parts and capital goods, including computer accessories and civilian aircraft. Imports of services set a record at $21.1 billion.
Although overshadowed by the record imports, exports jumped to $86.2 billion in September, the highest level since May 2001. The 2.8 percent month-to-month gain was the highest since June 2000. Services exports set a record at $26.3 billion.
The U.S. economy grew at sizzling 7.2 percent annual rate in the third quarter, but the larger-than-expected trade deficit in September could trim that estimate a tad.
Tim Mazanec, currency strategist at Investors Bank and Trust Co., said the trade data was "not much of a surprise. But it will have a slightly negative impact" on gross domestic product.
The trade gap totaled nearly $366 billion in the January-September period, on track to beat the 2002 record of $418 billion.
Meanwhile, the politically sensitive U.S. trade deficit with China set a record in September at $12.7 billion, as imports from the Asian giant hit $14.8 billion, also a record.
The trade deficit with China totaled $89.7 billion for the first nine months of the year, on track to surpass the record of $103 billion set in 2002.
The Bush administration has been under pressure from Congress to narrow the trade gap with China. U.S. manufacturers, and many lawmakers, complain China's pegged exchange rate gives it an unfair trade advantage by artificially depressing the price of its exports.
Since August, China has been buying large amounts of U.S. soybeans and cotton. On Wednesday, China signed a $1.7 billion deal to purchase 30 commercial jets from Boeing (NYSE:BA - News), along with jet engines from General Electric (NYSE:GE - News).
Detroit's Big Three automakers, General Motors (NYSE:GM - News), Ford Motor Co. (NYSE:F - News) and DaimlerChrysler AG (NYSE:DCX - News; XETRA:DCXGn.DE - News), said on Wednesday they will export thousands of vehicles to China over the next two years, substantially boosting the number of cars and trucks shipped to the world's fastest growing automotive market.
United States Department of COMMERCE NEWS Washington, D.C. 20230
ECONOMICS AND STATISTICS ADMINISTRATION ------------
U.S. Census Bureau U.S. Bureau of Economic Analysis
This release contains sensitive economic data not to be released before 8:30 a.m. Thursday, November 13, 2003
CB-03-178 Press Copy BEA-03-44 FT-900 (03-09)
For information on goods contact: U.S. Census Bureau: Haydn R. Mearkle (301) 763-2246 Nick Orsini (301) 763-2311
For information on services contact: U.S. Bureau of Economic Analysis: Technical: Christopher Bach (202) 606-9545 Media: Larry Moran (202) 606-2649
U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES September 2003
Goods and Services
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that total September exports of $86.2 billion and imports of $127.4 billion resulted in a goods and services deficit of $41.3 billion, $1.8 billion more than the $39.5 billion in August, revised. September exports were $2.4 billion more than August exports of $83.8 billion. September imports were $4.1 billion more than August imports of $123.3 billion.
In September, the goods deficit increased $1.8 billion from August to $46.5 billion, and the services surplus was virtually unchanged at $5.2 billion. Exports of goods increased $2.1 billion to $59.8 billion, and imports of goods increased $3.9 billion to $106.3 billion. Exports of services increased to $26.3 billion from $26.1 billion, and imports of services increased to $21.1 billion from $20.9 billion.
In September, the goods and services deficit was up $4.6 billion from September 2002. Exports were up $3.9 billion, or 4.7 percent, and imports were up $8.5 billion, or 7.1 percent.
Goods
The August to September change in exports of goods reflected increases in capital goods ($0.8 billion); automotive vehicles, parts, and engines ($0.6 billion); consumer goods ($0.3 billion); foods, feeds, and beverages ($0.3 billion); and industrial supplies and materials ($0.1 billion). Other goods were virtually unchanged.
The August to September change in imports of goods reflected increases in automotive vehicles, parts, and engines ($1.7 billion); capital goods ($1.4 billion); consumer goods ($0.4 billion); foods, feeds, and beverages ($0.3 billion); other goods ($0.2 billion); and industrial supplies and materials ($0.2 billion).
The September 2002 to September 2003 change in exports of goods reflected increases in industrial supplies and materials ($0.8 billion); consumer goods ($0.7 billion); foods, feeds, and beverages ($0.5 billion); and automotive vehicles, parts, and engines ($0.1 billion). A decrease occurred in capital goods ($0.1 billion). Other goods were virtually unchanged.
The September 2002 to September 2003 change in imports of goods reflected increases in industrial supplies and materials ($3.5 billion); capital goods ($1.7 billion); consumer goods ($1.4 billion); and foods, feeds, and beverages ($0.6 billion). Decreases occurred in automotive vehicles, parts, and engines ($0.4 billion) and other goods ($0.2 billion).
Services
Services exports increased $0.2 billion from August to September. The increase was mostly accounted for by an increase in other private services (which includes items such as business, professional, and technical services, insurance services, and financial services). Changes in the other categories of services exports were small.
Services imports increased $0.2 billion from August to September. The increase was mostly accounted for by increases in other private services, travel, and other transportation (which includes freight and port services). Changes in the other categories of services imports were small.
From September 2002 to September 2003, services exports increased $1.8 billion. The largest increase was in other private services ($1.2 billion).
From September 2002 to September 2003, services imports increased $1.9 billion. The largest increases were in other private services ($0.6 billion), other transportation ($0.5 billion), and passenger fares ($0.4 billion).
Goods and Services Moving Average
For the three months ending in September, exports of goods and services averaged $85.3 billion, while imports of goods and services averaged $125.6 billion, resulting in an average trade deficit of $40.3 billion. For the three months ending in August, the average trade deficit was $39.9 billion, reflecting average exports of $84.8 billion and average imports of $124.6 billion.
Selected Not Seasonally Adjusted Goods Details
The September figures showed surpluses, in billions of dollars, with Australia $0.7 (for August $0.5), Hong Kong $0.3 ($0.3), and Egypt $0.3 ($0.2). Deficits were recorded, in billions of dollars, with China $12.7 ($11.7), Western Europe $8.9 ($6.9), Canada $5.2 ($4.8), Japan $5.1 ($4.8), OPEC $4.0 ($4.1), Mexico $3.3 ($3.4), Taiwan $1.4 ($1.2), Korea $1.1 ($0.9), Brazil $0.6 ($0.6), and Singapore $0.1 (surplus of $0.8).
Advanced technology products (ATP) exports were $15.0 billion in September and imports were $18.9 billion resulting in a deficit of $3.9 billion. September exports were $0.5 billion more than the $14.5 billion in August, while imports were $2.7 billion more than the $16.2 billion in August.
Revisions
Goods carry-over in September was $0.3 billion (0.4 percent) for exports and $1.0 billion (0.9 percent) for imports. For August, revised export carry-over was $0.1 billion (0.2 percent), revised down from $0.3 billion (0.4 percent). For August, revised import carry-over was virtually zero, revised down from $0.7 billion (0.7 percent).
Services exports for August were revised up $0.2 billion to $26.1 billion. The revision was accounted for by upward revisions in travel and passenger fares. Services imports for August were revised up $0.3 billion to $20.9 billion. The revision was more than accounted for by upward revisions in travel and passenger fares.
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