U.S. Trade Deficit Widens in September

The U.S. trade deficit in goods and services (BOP basis) grew during September to $61.5 billion from $58.7 billion in August, revised from $58.3 billion, according to the U.S. Census Bureau. A $60.1 billion deficit was expected in the Action Economics Forecast Survey. Exports grew 2.2% (0.5% y/y) in September following a 1.4% August gain, revised from 1.6%. Imports rose 2.7% (-2.7% y/y) after falling 0.8% in August, revised from a 0.7% decline.

The increase in the goods & services deficit in September reflected a rise in the goods trade deficit to $86.3 billion from an $84.6 billion deficit in August. These figures compare to the advance report of an $85.8 billion September deficit issued two weeks ago. Goods exports increased 3.1% (-2.2% y/y) after a 1.8% rise. Imports of goods rose 2.7% (-3.0% y/y) after falling 0.9% in August. The services trade surplus narrowed to $24.8 billion in September from $25.9 billion in August. Services exports rose 0.4% (6.7% y/y) following a 0.7% August gain. Services imports moved 2.6% higher (-1.1% y/y) after falling 0.3% in August.

The real (inflation-adjusted) goods trade deficit (customs value) widened to $86.5 billion in September after narrowing to $83.8 billion in August. Real exports of goods jumped 2.0% (-0.9% y/y), following four straight monthly gains. Real exports of foods, feeds & beverages strengthened 12.3% (6.0% y/y). Real capital goods exports edged up 0.1% both m/m and y/y while real nonauto consumer goods exports rose 2.9% (3.4% y/y). Real auto exports increased 2.2% (14.4% y/y) and real industrial supplies & materials exports rose 0.2% (-9.6% y/y).

Real imports of goods strengthened 2.5% (-0.8% y/y) after falling 1.8% in August. Real imports of nonauto consumer goods increased 3.3% (-5.4% y/y) and real capital goods imports strengthened 2.3% (-4.7% y/y). Real auto imports rose 4.9% (15.2% y/y) and real foods, feeds & beverage imports increased 1.7% (-7.4% y/y). Edging 0.2% higher (-1.7% y/y) were real industrial supplies imports.

The rise in services exports reflected a 1.9% increase (26.9% y/y) in travel services and a 1.5% gain (4.1% y/y) in transport services. Financial services exports eased 0.2% (+3.3% y/y). A 2.6% rise (-1.1% y/y) in services imports reflected a 6.0% rise (15.1% y/y) in travel and a 6.7% jump (-13.1% y/y) in transport services. It also reflected a 0.5% gain (-1.3% y/y) in imports of financial services.

The goods trade deficit with China widened to a seasonally adjusted $24.1 billion in September and reversed the narrowing to $22.7 billion in August. Exports rose 13.5% (0.2% y/y) after falling 1.5% and imports increased 8.5% (-16.5% y/y) after falling 4.1%. The goods trade deficit with the European Union narrowed to $16.8 billion in September as exports fell 2.7% (-0.8% y/y) and imports declined 3.9% (+1.0% y/y). The goods trade deficit with Japan deepened to $6.9 billion after narrowing to $5.0 billion in the previous month. Exports rose 3.5% (-1.5% y/y) and imports surged 18.2% (12.1% y/y).

The international trade data, including relevant data on oil prices, can be found in Haver's USECON database. Detailed figures on international trade are available in the USINT database. The expectations figures are from the Action Economics Forecast Survey in AS1REPNA.