September 2016 International Trade (General)

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The goods and services deficit was $36.4 billion in September, down $4.0 billion from $40.5 billion in August. September exports were $189.2 billion, $1.0 billion more than August exports. September imports were $225.6 billion, $3.0 billion less than August imports.

The September decrease in the goods and services deficit reflected a decrease in the goods deficit of $2.6 billion to $57.5 billion and an increase in the services surplus of $1.4 billion to $21.1 billion.

Year-to-date, the goods and services deficit decreased $9.2 billion (2.5%) from the same period in 2015. Exports decreased $60.5 billion (3.5%). Imports decreased $69.7 billion (3.3%).

Goods by Selected Countries and Areas

The September figures show surpluses, in billions of dollars, with Hong Kong ($2.5), South and Central America ($1.8), United Kingdom ($0.9), Singapore ($0.7), and Brazil ($0.3). Deficits were recorded, in billions of dollars, with China ($26.9), European Union ($11.7), Japan ($5.4), Germany ($5.3), Mexico ($4.8), Italy ($2.8), India ($2.2), South Korea ($1.4), OPEC ($1.2), France ($0.8), Taiwan ($0.5), Canada ($0.4), and Saudi Arabia ($0.1).

* The deficit with China decreased $2.2 billion to $26.9 billion in September. Exports increased $0.2 billion to $10.2 billion and imports decreased $2.1 billion to $37.1 billion.

* The deficit with France decreased $1.2 billion to $0.8 billion in September. Exports increased $0.6 billion to $2.9 billion and imports decreased $0.6 billion to $3.7 billion.

* The balance with Saudi Arabia shifted from a surplus of $0.8 billion in August to a deficit of $0.1 billion in September. Exports decreased $1.0 billion to $1.5 billion and imports decreased $0.1 billion to $1.6 billion. 

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On a global scale, data compiled by the Netherlands Bureau for Economic Policy Analysis showed that world trade volume increased 1.5% in August (+0.7% year-over-year) while prices rose by 0.8% (-2.4% YoY). August’s price index was 20.9% below the August 2011 peak; price index changes are almost perfectly (but inversely) correlated with changes in the value of the U.S. dollar.

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.