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USA | Dec 8, 2020

US goods and services deficit increases to $62.1 billion in October

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American exports continue to trend down as the country’s import bill climbs amid the coronavirus (COVID-19) pandemic. (Photo: The Economic Times)

The United States Bureau of Economic Analysis (BEA) is reporting that America’s goods and services deficit increased by US$1.0 billion to $63.1 billion in October, up from the $62.1 billion recorded the previous month in September.

October exports jumped by US$4.0 billion over the amount recorded for September to total $182.0 billion, while imports for the said month of October amounted to US$245.1 billion, which was $5.0 billion more than September imports.

The US BEA pointed out that the October increase in the goods and services deficit reflected an increase in the goods deficit of US$0.6 billion to $81.4 billion and a decrease in the services surplus of $0.4 billion to US$18.3 billion.

A year to date comparison showed that for 2020, there was a 9.5% or US$46.6 billion increase in the goods and services deficit over 2019. Moreover, exports for 2020 fell by US$345.9 billion or 16.4%. Imports also fell by US$299.4 billion or 11.5%.

Three-month moving averages

For the three months ended in October, the average goods and services deficit rose by US$0.6 billion to $63.4 billion. This was due to a $4.0 billion increase in average exports to US$178.0 billion in October and a $4.6 billion increase in average imports to US$241.3 billion in October.

Exports of goods rose during the same period by US$3.7 billion to $126.3 billion. Capital goods exported went up by $1.5 billion while Industrial supplies and materials exported jumped by $1.6 billion. Additionally, export of services rose by US$0.3 billion to earn $55.7 billion in October. Of the services exported, travel increased by $0.2 billion and transport climbed by $0.2 billion.

Imports of goods went up by $4.3 billion to $207.8 billion in October. As for imports of goods all four categories of consumer goods went up.

Consumer goods and capital goods, each went up by US$1.4 billion, industrial supplies and materials, up by $1.3 billion while automotive vehicles increased by $1.0 billion. Imports of services increased by $0.7 billion to $37.4 billion in October. 

Of this, transport increased by $0.3 billion and travel rose by $0.3 billion.

Goods and services by selected countries

The third-quarter figures show surpluses, in billions of dollars, with South and Central America ($12.2), OPEC ($7.4), Hong Kong ($5.1), Brazil ($4.9), United Kingdom ($4.3), Singapore ($3.2), Saudi Arabia ($2.6), and Canada ($2.0).

Deficits were recorded, in billions of dollars, with China ($74.6), Mexico ($34.2), European Union ($31.1), Germany ($14.1), Japan ($12.8), India ($8.5), Taiwan ($7.3), Italy ($6.9), France ($5.9), and South Korea ($4.3).

• The deficit with Mexico increased $19.2 billion to $34.2 billion in the third quarter. Exports increased $15.6 billion to $58.8 billion and imports increased $34.8 billion to $92.9 billion.

• The deficit with the European Union increased $9.9 billion to $31.1 billion in the third quarter. Exports increased $10.4 billion to $98.5 billion and imports increased $20.3 billion to $129.6 billion.

• The surplus with Hong Kong increased $3.3 billion to $5.1 billion in the third quarter. Exports decreased $0.2 billion to $8.5 billion and imports decreased $3.5 billion to $3.3 billion. 

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