U.S. Exports Down
The Department of Commerce’s Census Bureau and the Bureau of Economic Analysis (BEA) announced August 11 that total exports for the month of June dropped $4.1 billion to $170.9 billion, down from $175 billion in May. This drop resulted in a trade deficit of $53.1 billion, up from $50.8 billion in May, revised.
Both goods and services suffered in June with the goods deficit increasing to by $2.1 billion from May to $67.6 billion, and the services surplus decreasing a very slight $0.1 billion to $14.5 billion. Although both goods exports and imports were down, there was a much more significant drop in exports of goods to the tune of $4.1 billion versus the drop in goods imports of just $1.9 billion.
Compared with June 2010, this most recent data shows the overall trade deficit up $6.2 billion. Despite this growing gap, U.S. exports increased 12.9 percent over the last year. Causing the gap was the fact that imports also were up, but slightly higher at 13 percent.
Among the specific goods categories that decreased, causing the drop in exports: industrial supplies and materials ($2.0 billion); capital goods ($1.5 billion); foods, feeds, and beverages ($0.8 billion); and other goods ($0.5 billion). An increase occurred in consumer goods ($0.7 billion), but it was not enough to balance out other decreases.
Although the decrease in exports of services was extremely slight, they were caused by decreases in passenger fares and other transportation (which includes freight and port services). Those decreases were by and large offset by an increase in other private services, including business, professional, and technical services, insurance services, and financial services.
Please click here for more details from BEA.