US trade deficit increases 33.1%, hitting record of $80.9 billion in September, exports plunge, deficit with China widens

[xizhimen]

US trade deficit increases 33.1% , hitting record of $80.9 billion in September, exports plunge, deficit with China widens​

AP / Nov 5, 2021, 11:17 IST

WASHINGTON: The US trade deficit hit an all-time high of $80.9 billion in September as American exports fell sharply while imports, even with supply chain problems at American ports, continue to climb.

The September deficit topped the previous record of $73.2 billion set in June, the Commerce Department reported Thursday. The deficit is the gap between what the United States exports to the rest of the world and the imports it purchases from foreign nations.

In September, exports plunged 3% to $207.6 billion while imports rose 0.6% to $288.5 billion.

Part of the weakness reflected a 15.5% drop in petroleum exports related to the drilling rig and refinery shutdowns during Hurricane Ida in the Gulf of Mexico. Economists expect that decline to reverse in coming months with petroleum production coming back on line.

The politically sensitive goods deficit with China shot up 15% in September to $36.5 billion. Through the first nine months of this year America's deficit with China, the largest with any country, totaled $255.4 billion, an increase of 14.9% over the same period in 2020.

The overall trade deficit through September hit $638.6 billion, a 33.1% increase over the same period last year. That big jump reflects the surge in US demand for imports compares to last year when many parts of the economy were shut down because of the coronavirus.

In September, the deficit in goods rose to $98.2 billion, up a sharp 10% from the August deficit. The surplus in services, which covers such things as airline travel and financial services, rose 10.5% to $17.2 billion, still well below the levels seen before the pandemic hit. The surplus in services is expected to rise further as Covid-19 cases retreat and travel restrictions are eased.

The rising trade deficit subtracted 1.1 percentage points from growth in the July-September quarter, a period when the economy, as measured by the gross domestic product, slowed to an annual growth rate of just 2%, sharply lower than a GDP growth rate of 6.7% in the April-June period.

As Covid-19 cases retreat and the supply chain becomes untangled, the US trade deficit should start to improve in coming months although the improvement may be modest, economists say.
"We look for the trade balance to remain historically elevated through year-end, but moderation in domestic demand will cool import volumes while steady vaccine diffusion and slower virus spread should underpin stronger export growth," Kathy Bostjancic, chief US financial economist at Oxford Economics, said.

US trade deficit hits record of $80.9 billion in September - Times of India

International Business News: The US trade deficit hit an all-time high of $80.9 billion in September as American exports fell sharply while imports, even with supply chain problem

timesofindia.indiatimes.com

 

[xizhimen]

US is sanctioning China or sanctioning themselves?

 

[xizhimen]

Without robutst economic and industrial support, US military will also be doomed, it's only a matter of time. Economy decides everything else in the long run.

 

[xizhimen]

U.S. Trade Deficit Hits Fresh Record on Goods Demand, Higher Inflation​

Trade gap was also affected by a sharp decline in U.S. exports​

U.S. Trade Deficit Hits Fresh Record on Goods Demand, Higher Inflation

The U.S. trade deficit widened in September to a record $80.9 billion, driven by climbing demand for capital goods like computers and electric equipment and industrial supplies.

www.wsj.com

 

[xizhimen]

Exports Slump as Trade Gap Hits Another Record, Trade Deficit with China Grows $3.4 Billion to $31.5 Billion Driven by $3.2 Billion More in Imports​

Nov. 5, 2021
The U.S. trade deficit hit $80.9 billion in September, up $8.1 billion from August, setting a new all-time high for the second month in a row.

The gap between U.S. exports and imports grew 11.2% last month, according to the latest government data. The U.S. trade deficit hit $80.9 billion in September, up $8.1 billion from August, setting a new all-time high for the second month in a row. Imports increased slightly while exports fell as supply chain concerns continue to hamstring manufacturers.

The data, released by the Census Bureau and the U.S. Department of Commerce, points to intense demand in the U.S. for industrial supplies and materials as well as capital goods like electronic equipment. Goods exports fell by $7.1 billion to $142.7 billion last month, mostly thanks to fewer industrial supplies and materials exports, which fell $5.7 billion. Exports of nonmonetary gold fell $1.9 billion while trade of U.S. crude oil, petroleum products, and other precious metals all fell about $1 billion each.

At the same time, imports of industrial supplies and materials increased by $1.0 billion, with a notable increase in organic chemicals imports, which rose $0.9 billion by itself.

A similar trend is visible in the capital goods sector. Exports fell $1.6 billion there as the U.S. shipped fewer semiconductors and civilian aircraft engines. Capital goods imports grew by $2.5 billion thanks to U.S. demand for computers, which rose by $1.2 billion, and electrical apparatuses, which rose by half a billion dollars.


That trend was flipped in one category: pharmaceutical preparations. Counted as a consumer good, imports of drugs meant for human or veterinary consumption fell $1.3 billion while exports of the same good rose by $1.5 billion, contributing to a $0.7 billion increase in consumer goods exports.

In the automotive sector, imports of vehicles, parts and engines tumbled substantially by $2.2 billion. $1.7 billion of that came from fewer passenger vehicle imports.

The overall trade gap is calculated with a combination of the separate goods and services gaps. In September, the goods deficit rose $8.9 billion to $98.2 billion while the services gap grew $0.8 billion to $17.2 billion.

The United States’ deficits with China and Mexico increased, while its trade deficit with Japan shrank. The U.S.-China trade gap grew $3.4 billion to $31.5 billion driven by $3.2 billion more in imports, and the U.S.-Mexico gap grew $2.3 billion to $8.8 billion as exports to the neighboring country fell $1.7 billion.

Exports Slump as Trade Gap Hits Another Record

The U.S. trade deficit hit $80.9 billion in September, up $8.1 billion from August, setting a new all-time high for the second month in a row.

www.mhlnews.com

 

[xizhimen]

US always resorts to sanctions to bully other nations , it's about time that someone shows them their place.