U.S. Trade Imbalance With China Drives Deficit; Canada’s Merchandise Trade Sees Surplus

Despite record-high exports of capital goods, America’s trade imbalance with China expanded as the trade deficit increased in September, marking the first rise in three months. According to the U.S. Bureau of Economic Analysis, the U.S. reported a trade deficit of $61.5 billion, a 4.9 percent increase from August’s $58.7 billion deficit and surpassing analysts’ forecast of $59.8 billion. Exports of goods and services, notably capital goods, reached their highest levels since August 2022, with capital goods exports at a historic peak. Offsetting this was an increase in overall imports by 2.7 percent to $322.7 billion, while U.S. goods exports rose by 2.2 percent to $261.1 billion in September.

Economists anticipate a weakening in both exports and imports in the coming months, with imports expected to be more affected due to slowing consumer spending and inventory adjustments by businesses. The U.S. trade deficit with China reached $28.4 billion, the highest since October 2022, driven by $40.3 billion in imports, also a record high since October 2022. However, the overall trade deficit for the first nine months of 2023 has narrowed by 20 percent compared to the same period the previous year, largely due to increased exports and reduced import values.

Meanwhile, the U.S.’s northern neighbor registered a second consecutive trade surplus led by an increase in energy exports. Notably, Canada’s trade surplus with the United States widened for a third consecutive month, driven by higher exports of energy products.

 

Copyright © 2023 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com’s content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

]]>