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June Offers Encouraging International Trade Picture

U.S. international trade improved in June, as exports of goods and services showed more than a $3 billion reduction in the trade deficit compared with revised May trade data, government data released Aug. 6 show. But while the monthly trade differential improved for the U.S., the year-over-year trade deficit actually worsened.

Exports in June totaled $195.9 billion, and with imports totaling $237.4 billion, the resulting deficit in goods and services was $41.5 billion, down from $44.7 billion in May, according to the U.S. Census Bureau and the U.S. Bureau of Economic Analysis. The findingswere announced by the U.S. Department of Commerce.

June exports were up by $300 million from May’s total of $195.6 billion, while imports were $2.9 billion less than May’s $240.3 billion total.

In terms of goods trade, the deficit decreased $3 billion from May, to $60.3 billion, while the services surplus increased by $100 million, to $18.7 billion. Exports of goods increased by $100 million, to $136.9 billion, as goods imports decreased by $2.9 billion, to $197.2 billion.

Services exports grew by $100 million, to $59billion, as services imports stayed virtually unchanged at $40.2 billion.

Year over year, the June goods and services deficit increased by $5 billion. Exports were up $5.5 billion, or 2.9 percent, and imports were up $10.5 billion, or 4.6 percent.

Goods breakdown

The May to June decrease in exports of goods reflected a $500 million decrease in other goods, plus a $300 million decrease in Foods, Feeds, and Beverages.  Increases occurred in Consumer Goods ($400 million); Automotive Vehicles, Parts, and Engines $200 million); and Industrial Supplies and Materials ($100 million). Capital Goods exports were virtually unchanged.

The monthly decrease in goods imports reflected a $1.3 billion drop in Consumer Goods, while Automotive Vehicles, Parts, and Engines imports fell by $1.1 billion; Industrial Supplies and Materials dropped by $500 million; and Capital Goods by $300 million. Foods, Feeds, and Beverages saw a $200 million increase, while Other Goods were virtually unchanged.

The year-over-year increase in exports of goods reflected a $1.1 billion boost in Foods, Feeds, and Beverages, while exports of Automotive Vehicles, Parts, and Engines jumped by $1 billion and Consumer Goods grew by $700 million. A $100 million decrease occurred in Industrial Supplies and Materials.  Capital Goods and Other Goods were virtually unchanged.

When comparing June with a year earlier, the goods imports gain reflected a $3.4 billion increase in Capital Goods, along with a $2.1 million boost in Consumer Goods, with a $1.9 billion rise Automotive Vehicles, Parts, and Engines; Foods, Feeds and Beverages up $1.2 billion; and both Other Goods and Industrial Supplies and Materials showing $100 million gains.

Services breakdown

Services exports in June rose $100 million from the previous month. A $200 million increase in Travel (for all purposes including education) was partly offset by a $100 million decrease in Transport, which includes freight and port services and passenger fares. Changes in the other categories of services exports were relatively small and mostly offsetting, the Commerce Department said.

Imports of services were virtually unchanged from May to June. A $100 million increase in charges for the use of intellectual property, which included payments for the rights to broadcast the portion of the 2014 soccer World Cup that occurred in June, was mostly offset by a $100 million decrease in Transport.

Changes in the other categories of services imports were relatively small and mostly offsetting.

June year-over-year services exports were up $2 billion, or 3.5 percent. At $1.1 billion, Travel represented the largest increase, followed by Transport and in Maintenance and Repair Services, both up by $400 million.

Services imports rose $1.6 billion, or by 4.3 percent. At $700 million, Travel (for all purposes including education) earned the largest increase, followed by a $600 million for Other Business Services.

For the three months ended in June, exports of goods and services averaged $195 billion, while imports averaged $239.4 billion, resulting in an average trade deficit of $44.4 billion. For the three months ended in May, the average trade deficit was $45.3 billion, reflecting average exports of $194.3 billion and average imports of $239.5 billion.

Surpluses and deficits

Broken out by trade partnerships, the June figures show a $3.1 billion U.S. surplus with Hong Kong, up from $2.5 billion in May; followed by Australia at $1.3 billion, up from $1.2 billion; Singapore at $1.2 billion, up from $1 billion; and Brazil at $900 million, down from $1.1 billion.

Deficits were recorded with China, at $30.1 billion, up from $28.8 billion; European Union at $11.2, down from $12.3 billion; Japan at $5.4 billion, up from $5.1 billion; Germany at $5.2 billion, down from $6.6 billion; Mexico at $4.9 billion, up from $4.3 billion; OPEC at $3.9 billion, down from $4.2 billion; Ireland at $2.8 billion, down from $2.1 billion; Canada at $2.7 billion, down from $2.8 billion; Saudi Arabia at $1.9 billion, down from $2.7 billion; South Korea at $1.9 billion, down from $2.7 billion; and India at $1.3 billion, down from $2.4 billion.

Advanced technology products exports totaled $28.4 billion in June and imports were $35.8 billion, resulting in a deficit of $7.5 billion. June exports were $800 million more than the $27.6 billion in May, while June imports were $600 million more than the $35.2 billion in May.

 

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