by Calculated Risk on 10/11/2012 09:08:00 AM
Thursday, October 11, 2012
Trade Deficit increased in August to $44.2 Billion
The Department of Commerce reported:
[T]otal August exports of $181.3 billion and imports of $225.5 billion resulted in a goods and services deficit of $44.2 billion, up from $42.5 billion in July, revised. August exports were $1.9 billion less than July exports of $183.2 billion. August imports were $0.2 billion less than July imports of $225.7 billion.June was revised from $42.0 billion. The trade deficit was larger than the consensus forecast of $44.0 billion.
The first graph shows the monthly U.S. exports and imports in dollars through July 2012.
![U.S. Trade Exports Imports](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghn19XnttvmLLMBALVc_U6uar70n83TR9SdSmL49JnUgo6f8FtwPyB4LL7pEEKWSE3_ufnA7GwJb9Y00Sn8mGHAGhyphenhyphen9i2abfFbXWv9hzskhGg411QmqzmPCvxcpKqFdVblXpxQ/s320/TradeAug2012.jpg)
Both exports and imports decreased in August. It appears that the global economic weakness is impacting both exports and imports.
Exports are 9% above the pre-recession peak and up 2% compared to August 2011; imports are 3% below the pre-recession peak, and up about 1% compared to August 2011.
The second graph shows the U.S. trade deficit, with and without petroleum, through August.
![U.S. Trade Deficit](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPXSQhAOaFrVDglVMnJ-h6MllQT16IsVPciZAmhlIpRrnjmzvX1w7OuDFI7Idr2CmFTAZStvB8DYTbnbJFtasf1ipoWfc8sfKFlkwL8sR1sbo-PvWWCLz2jnohxIuM5PXl9LEC/s320/TradeDeficitAug2012.jpg)
Oil averaged $94.36 in August, up slightly from $93.83 per barrel in July. Import oil prices will probably increase further in September. The trade deficit with China decreased slightly to $28.7 billion in August, down from $29.0 billion in August 2011. Still, most of the trade deficit is due to oil and China.
The trade deficit with the euro area was $9.7 billion in August, up from $7.8 billion in August 2011.