Last Update: 06-Oct-20 09:27 ET
- The trade deficit widened to $67.1 billion in August (Briefing.com consensus -$66.2 billion) from an upwardly revised $63.4 billion (from -$63.6 billion) in July.
- The widening deficit was a function of imports increasing more than exports.
- August imports were $239.0 billion, $7.4 billion more than July imports. August exports were $171.9 billion, $3.6 billion more than July exports.
- Exports of goods jumped $3.4 billion, led by a $3.9 billion increase in industrial supplies. Capital goods exports decreased $1.4 billion, as semiconductors decreased $1.2 billion.
- Imports of goods rose $6.5 billion, paced by a $3.8 billion increase in consumer goods. Automotive vehicles, parts, and engines imports increased $1.7 billion while imports of industrial supplies and materials decreased $1.5 billion.
- The deficit with China decreased to $1.9 billion to $26.4 billion in August.
- The key takeaway from the report is the understanding that it reflects a pickup in trade activity from the pandemic lows, yet it is also a reminder of just how damaging the pandemic has been on trade activity. Year-over-year, average exports decreased $44.8 billion from the three months ending August 2019 while average imports decreased $34.7 billion.