The Goods and Services Deficit Increased to $40.7 billion in August 2016

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that the goods and services deficit was $40.7 billion in August, up $1.2 billion from $39.5 billion in July, revised.  August exports were $187.9 billion, $1.5 billion more than July exports. August imports were $228.6 billion, $2.6 billion more than July imports.

The August increase in the goods and services deficit reflected a decrease in the goods deficit of less than $0.1 billion to $60.3 billion and a decrease in the services surplus of $1.2 billion to $19.6 billion.

Year-to-date, the goods and services deficit decreased $4.3 billion, or 1.3 percent, from the same period in 2015. Exports decreased $62.4 billion or 4.1 percent. Imports decreased $66.8 billion or 3.6 percent.

Exports of goods increased $1.2 billion to $125.3 billion in August.

Exports of goods on a Census basis increased $0.8 billion.

• Industrial supplies and materials increased $1.4 billion.
  • Nonmonetary gold increased $0.9 billion.
• Automotive vehicle, parts, and engines increased $0.4 billion.
• Capital good decreased $0.7 billion.
  • Civilian aircraft decreased $0.8 billion.

Net balance of payments adjustments increased $0.4 billion.

Exports of services increased $0.3 billion to $62.5 billion in August.

• Travel (for all purposes including education) increased $0.2 billion.
• Transport, which includes freight and port services and passenger fares, increased $0.1 billion.

Imports of goods increased $1.1 billion to $185.6 billion in August.

Imports of goods on a Census basis increased $1.2 billion.

• Capital goods increased $1.2 billion.
  • Civilian aircraft increased $0.6 billion.
• Other goods increased $0.7 billion.
• Industrial supplies and materials decreased $0.8 billion.
  • Nonmonetary gold decreased $1.4 billion.

Net balance of payments adjustments decreased less than $0.1 billion.

Imports of services increased $1.5 billion to $43.0 billion in August.

• Charges for the use of intellectual property increased $1.2 billion. The increase reflects payments for the rights to broadcast the 2016 Summer Olympic Games.
• Travel (for all purposes including education) increased $0.2 billion.

The August figures show surpluses, in billions of dollars, with Hong Kong ($2.4), South and Central America ($1.7), Saudi Arabia ($0.8), Singapore ($0.7), United Kingdom ($0.4), and Brazil ($0.2). Deficits were recorded, in billions of dollars, with China ($29.2), European Union ($12.3), Japan ($5.7), Germany ($5.3), Mexico ($5.2), South Korea ($2.5), Italy ($2.4), France ($2.0), India ($1.9), Taiwan ($1.5), Canada ($1.1), and OPEC ($0.3).

• The surplus with Hong Kong increased $0.4 billion to $2.4 billion in August. Exports increased $0.4 billion to $3.0 billion and imports increased less than $0.1 billion to $0.7 billion.
• The balance with Saudi Arabia shifted from a deficit of $0.2 billion to a surplus of $0.8 billion in August. Exports increased $1.3 billion to $2.5 billion and imports increased $0.4 billion to $1.7 billion.
• The deficit with France increased $1.0 billion to $2.0 billion in August. Exports decreased $0.6 billion to $2.3 billion and imports increased $0.4 billion to $4.3 billion.

NOTE: All statistics referenced are seasonally adjusted; statistics are on a balance of payments basis unless otherwise specified.