US Trade Deficit Expands As Imports Rise

Dow Jones Newswires | September 11, 2003

[Starwind]

DATA SNAP: US Trade Deficit Expands As Imports Rise

======================================================!
International Trade                    !Surprise: Yes !
.                    July    June      !Trend: Deficit!
.  Deficit:        $40.32B   $40.04B   !    Rises     !
.  Exports:        $86.15B   $84.46B   !Consensus:    !
.  Imports:        $126.47B  $124.49B  !$41.0 Bln     !
======================================================!

WASHINGTON (Dow Jones)--The U.S. trade deficit widened in July as purchases of foreign goods and services climbed to their second highest level on record.

The U.S. deficit in international trade of goods and services rose to $40.32 billion from a revised $40.04 billion in June, the Commerce Department said Thursday.

Analysts were expecting a larger deficit figure for July. A Dow Jones Newswires-CNBC panel of 21 economists had predicted the shortfall would be $41.0 billion.

The deficit in June was revised up from a previously reported $39.55 billion.

The July report showed imports advanced to $126.47 billion. The Commerce Department said the level was the highest since September 2000 and the second highest on record. U.S. purchases of foreign-made capital goods rose by $25 million. Imports of foreign automobiles and parts decreased by $148 million. But Americans bought $745 million more foreign consumer goods such as toys, games and apparel. And imports of industrial supplies advanced by $1 billion.

The nation's energy bill climbed to $11.67 billion in July from $10.56 billion in the prior month. There was a $1.20 increase in the average price of a barrel of oil to $26.70 in July. The U.S. imported a total $9.07 billion of crude oil during the month, up from $7.96 billion in June. The quantity of foreign crude purchased was 339.7 million barrels.

U.S. exports rose by 2.0% to $86.15 billion, the highest level since May 2001. Americans sold abroad $634 million more capital goods like civilian aircraft and computers. The U.S. exported $265 million more automobiles and parts, but sold $101 million less consumer goods such as household appliances and jewelry. Foreign sales of industrial supplies were up by $365 million. Foods, feeds and beverages rose by $158 million.

Deficits with major trading partners were mixed in July. The deficit with Canada widened to $4.96 billion from $3.67 billion in June. The deficit with Mexico was $3.22 billion, after $3.42 billion in the previous month.

The trade deficit with Western Europe expanded, widening to a record $11.17 billion from $7.96 billion in June. The deficit with Japan grew to $5.92 billion, compared to a $5.38 billion deficit in June.

The trade gap with China widened to a record $11.34 billion from June's $9.99 billion.

-By Jeff Bater; Dow Jones Newswires; 202 862 6616; jeff.bater@dowjones.com

(END) Dow Jones Newswires

[Starwind]

The full BEA report is at U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES - July 2003

[Starwind]

Correction: The full Commerce Dept report (.pdf) is at U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES - July 2003

[Starwind]

Table of U.S. Goods, Services Trade Balance Data .

                                                        Year To Date
                            JULY          JUNE        2003        2002

DEFICIT                     40.32         40.04       285.47      229.01
  PREVIOUS REPORT                         39.55
TOTAL IMPORTS              126.47        124.49       867.20      792.10
  PERCENT CHANGE             1.6           0.3          9.5        -3.9
TOTAL EXPORTS               86.15         84.46       581.73      563.10
  PERCENT CHANGE             2.0           2.4          3.3        -7.9
MERCHANDISE TRADE           44.21         43.72       311.21      258.15
  DEFICIT % CHANGE           1.1          -3.7         20.6         5.0

(DOLLAR FIGURES IN BILLIONS, PERCENT CHANGES IN MONTHLY
COLUMNS ARE FROM PREVIOUS MONTH.  PERCENT CHANGES IN YEAR-TO-DATE COLUMNS ARE
FROM PREVIOUS YEAR.)

(MORE) Dow Jones Newswires 09-11-03 0830ET- - 08 30 AM EDT 09-11-03

[Starwind]

Table of U.S. Trade Data -2: Imports, Exports .

                                                         YEAR TO DATE
                              JULY          JUNE        2003        2002

SERVICE IMPORTS               20.66         20.16      139.69      130.12
 TRAVEL                        4.81          4.61       31.99       33.51
 PASSENGER FARES               1.86          1.78       11.74       11.40
 OTHER TRANSPORTATION          3.76          3.66       25.81       21.77
 ROYALTIES, LICENSE FEES       1.65          1.62       11.19       11.31
 OTHER PRIVATE SERVICES        6.35          6.27       43.56       39.73
 DIRECT DEFENSE EXPEND         1.98          1.97       13.65       10.70
 OTHER U.S. GOVERNMENT         0.25          0.25        1.74        1.71

GOODS IMPORTS (CENSUS)       105.60        103.86      725.57      660.05
 FOOD, FEED, BEVERAGE          4.58          4.46       31.90       28.33
 INDUSTRIAL (INCL OIL)        26.93         25.93      184.00      147.99
 CAPITAL (EXC AUTOS)          24.44         24.41      168.31      164.37
 AUTOS, PARTS                 18.08         18.23      122.13      116.32
 CONSUMER(EXC AUTO,FOOD)      27.42         26.67      191.32      174.32
 OTHER                         4.15          4.15       27.91       28.71

SERVICE EXPORTS               25.61         25.20      173.60      167.74
 TRAVEL                        5.43          5.24       36.42       37.65
 PASSENGER FARES               1.44          1.35        8.95        9.89
 OTHER TRANSPORTATION          2.65          2.69       18.40       16.58
 ROYALTIES, LICENSE FEES       3.91          3.89       27.18       25.39
 OTHER PRIVATE SERVICES       11.06         10.93       75.28       71.14
 MILITARY SALES CONTRACTS      1.06          1.04        6.91        6.62
 OTHER U.S. GOVERNMENT         0.07          0.07        0.47        0.46

GOODS EXPORTS (CENSUS)        61.39         60.14      414.36      401.90
 FOOD, FEED, BEVERAGE          4.59          4.43       30.60       28.89
 INDUSTRIAL (INCL OIL)        14.85         14.48      100.36       89.76
 CAPITAL (EXC AUTOS)          24.79         24.16      166.05      169.62
 AUTOS, PARTS                  6.82          6.55       46.72       45.85
 CONSUMER(EXC AUTO,FOOD)       7.59          7.69       51.24       48.93
 OTHER                         2.77          2.84       19.39       18.85

(DOLLAR FIGURES IN BILLIONS, SEASONALLY ADJUSTED)

(MORE) Dow Jones Newswires 09-11-03 0830ET- - 08 30 AM EDT 09-11-03

[Starwind]

Table of U.S. Trade Data -3: Balances By Region .

                             JULY           JUNE        TO DATE

CANADA                       -4.962         -3.669      -30.731
MEXICO                       -3.219         -3.423      -24.250
EUROPEAN UNION              -10.471         -7.765      -53.313
AUSTRIA                      -0.203         -0.201       -1.367
BELGIUM                       0.196          0.616        3.033
FINLAND                      -0.142         -0.201       -1.262
FRANCE                       -1.301         -0.886       -6.368
GERMANY                      -3.694         -3.566      -22.501
ITALY                        -1.733         -1.234       -8.874
NETHERLANDS                   0.568          0.732        5.154
SPAIN                        -0.234         -0.087       -0.506
SWEDEN                       -0.767         -0.762       -4.562
U.K.                         -1.099         -0.475       -4.422
NORWAY                       -0.347         -0.431       -2.280
SWITZERLAND                  -0.242          0.285       -1.036
HUNGARY                      -0.134         -0.214       -1.075
POLAND                       -0.052         -0.052       -0.337
RUSSIA                       -0.887         -0.653       -4.097
AUSTRALIA                     0.831          0.828        3.916
CHINA                       -11.338         -9.990      -65.312
JAPAN                        -5.919         -5.384      -38.126
HONG KONG                     0.207          0.389        2.602
KOREA                        -1.291         -0.964       -6.656
SINGAPORE                     0.357         -0.028        0.445
TAIWAN                       -1.115         -1.070       -8.455
ARGENTINA                    -0.044         -0.081       -0.552
BRAZIL                       -0.673         -0.565       -3.988
COLOMBIA                     -0.261         -0.231       -1.642
INDONESIA                    -0.683         -0.563       -4.085
NIGERIA                      -0.837         -0.556       -5.356
SAUDI ARABIA                 -1.345         -1.226       -8.795
VENEZUELA                    -1.255         -1.377       -7.521
EGYPT                         0.119          0.097        0.569
SOUTH AFRICA                 -0.247         -0.140       -1.084

(MORE) Dow Jones Newswires 09-11-03 0830ET- - 08 30 AM EDT 09-11-03

[stuartcr]

Didn't a lot of the stuff we're currently importing, used to be manufactured in the US, and we were exporting it??

[Starwind]

Table of U.S. Trade Data -4: Petroleum, Products Imports .

IMPORTS OF PETROLEUM AND RELATED PRODUCTS
                           JULY          JUNE

BARRELS (MLNS)              426.70         401.21
  PERCENT CHANGE              6.4           -1.6
VALUE (BLNS)                 11.67          10.56
  PERCENT CHANGE             10.5            3.9
AVG PRICE PER BARREL        $26.70         $25.50

(DATA FOR PETROLEUM AND GEOGRAPHIC BREAKDOWN ARE REPORTED
ON A CUSTOMS BASIS AND ARE NOT SEASONALLY ADJUSTED)

(END) Dow Jones Newswires 09-11-03 0830ET- - 08 30 AM EDT 09-11-03

[kittymyrib]

Yep, when you don't make anything here anymore, it's no surprise that we have to import billions of dollars worth of junk from China. We have to keep the shelves full at the Great Wall-Mart to celebrate Jesus birthday, doncha know.

[stuartcr]

Makes you wonder what our leaders are up to sometimes....

[staytrue]

Our deficit with china is about the same as the deficit with western europe and is about the same as the combined deficit with mexico and canada. We run deficits with everyone, not just china which indicates the problem lies at here at home.

[Last Dakotan]

Free trade; Great in thoery, terrible in practice for the American economy.
We've gotta keep rattling the cages of the political elites.

[stuartcr]

I also think, and hope, that it will be about the economy.