Do you ever wonder why it is difficult to find something made in the USA when shopping? Goods and services deficit increased to-41.1 billion in May compared to April’s deficit of -37.4 billion. If a country exports a greater value than it imports, it is called a trade surplus, or a “favorable balance.” If a country imports a greater value than it exports, it is called a trade deficit, or “unfavorable balance”, or a “trade gap”.
Balance of trade (BOT) is the difference between a country’s imports and its exports. Balance of trade is the largest component of a country’s balance of payments. Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad. (Investopedia)
The U.S. Bureau of Economic Analysis (BEA) uses the data to update U.S. balance of payments, gross domestic product, and national accounts. Other federal agencies use them for economic, financial, and trade policy analysis (such as export promotion studies and export price indexes). Private businesses and trade associations use them for domestic and overseas market analysis, and industry-, product-, and area-based business planning. Major print and electronic news media use them for general and business news reports.
- Exports decreased to $182.4 billion in May from $182.7 billion in April. Goods were $119.8 billion in May, down from $120.0 billion in April. Services were $62.5 billion in May, down from $62.6 billion in April.
- Imports increased to $223.5 billion in May from $220.1 billion in April. Goods were $182.1 billion in May, up from $178.6 billion in April. Services were $41.4 billion in May, up less than $0.1 billion from April. The increase in imports of goods mainly reflected increases in industrial supplies and materials ($2.3 billion) and in consumer goods ($1.3 billion).
- For goods, the deficit was $62.2 billion in May, up from $58.6 billion in April. For services, the surplus was $21.1 billion in May, down from $21.2 billion in April. (United States Census Bureau)
Total May exports of $182.4 billion and imports of $223.5 billion resulted in a goods and services deficit of $41.1 billion.
The goods deficit with China increased from $24.3 billion in April to $29.0 billion in May. Exports decreased $0.1 billion (primarily other industrial machines and civilian aircraft) to $8.5 billion, while imports increased $4.6 billion (primarily cell phones, computers, and computer accessories) to $37.5 billion.
The balance with the United Kingdom shifted from a surplus of $0.7 billion to a deficit of $0.3 billion in May. Exports decreased $1.2 billion to $4.0 billion and imports decreased $0.2 billion to $4.3 billion.
The deficit with South Korea decreased $1.1 billion to $2.0 billion in May. Exports increased $0.7 billion to $3.7 billion and imports decreased $0.3 billion to $5.6 billion.
The goods deficit with the European Union increased from $11.9 billion in April to $13.4 billion in May. Exports decreased $1.0 billion (primarily civilian aircraft and nonmonetary gold) to $22.2 billion, while imports increased $0.5 billion (primarily passenger cars) to $35.5 billion.
The goods deficit with Mexico increased from $5.7 billion in April to $5.8 billion in May. Exports decreased $0.3 billion to $19.0 billion (primarily computer accessories and passenger cars), while imports decreased $0.3 billion (primarily computers and automotive parts and accessories) to $24.8 billion.
Sources: Investopedia, Wikipedia, U.S Bureau of Economic Analysis (BEA), U.S. Census Bureau
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