August 2015 International Trade (General)

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The goods and services deficit was $48.3 billion in August, up $6.5 billion from $41.8 billion in July. August exports were $185.1 billion, $3.7 billion less than July exports. August imports were $233.4 billion, $2.8 billion more than July imports.

The August increase in the goods and services deficit reflected an increase in the goods deficit of $6.6 billion to $67.9 billion and an increase in the services surplus of $0.1 billion to $19.6 billion.

Year-to-date, the goods and services deficit increased $17.6 billion, or 5.2 percent, from the same period in 2014. Exports decreased $58.9 billion or 3.8 percent. Imports decreased $41.3 billion or 2.2 percent.

The August figures show surpluses, in billions of dollars, with South and Central America ($3.3) and OPEC ($1.0). Deficits were recorded, in billions of dollars, with China ($32.9), European Union ($14.5), Germany ($6.8), Mexico ($5.3), Japan ($5.2), South Korea ($2.7), Canada ($2.2), Italy ($2.1), France ($2.0), India ($1.9), United Kingdom ($0.3), Brazil ($0.2), and Saudi Arabia (less than $0.1).

Of particular interest:
   * The deficit with China increased $4.2 billion to $32.9 billion. Exports decreased $0.6 billion to $9.8 billion and imports increased $3.6 billion to $42.8 billion.
   * The deficit with the European Union increased $2.1 billion to $14.5 billion. Exports decreased $0.7 billion to $21.7 billion and imports increased $1.4 billion to $36.2 billion. 

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On a global scale, data compiled by the Netherlands Bureau for Economic Policy Analysis showed that world trade volume contracted by 0.4% in July (+0.8% year-over-year) while prices fell by 1.1% (-13.7% YoY).

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.