Saturday, August 21, 2010

Trade deficit expands by 19% to 50 Billion dollars in June

The US Census Bureau and the US Bureau of Economic Analysis reported on August 11th, that the trade deficit widen by 19% to $49.9 Billion dollars from $42 Billion dollars in May 2010. The jump was unexpected, since the economy is in recession, and was blamed on retailers stocking up for the fall and winter buying season. The willingness to add the stocks was taken as a positive economic sign.

Some of the other highlights in the report were a $5.4 Billion dollar jump in imported goods and a $2.3 Billion drop in exports creating a $7.7 net goods deficit. "May to June" increase in imports includes $3.1 Billion increase in consumer goods, $1.3 increase in Autos and parts and a $0.5 billion dollar increase in capital goods.

You can see the increase in imports and drop in exports during June.

This second chart shows the increase in the trade deficit (a negative number) to about $50 Billion dollars.

No comments:

Blog Archive