Trade Deficit for September 2010 - $44 Billion

The September 2010 U.S. trade deficit decreased $2.5 billion to $44.0 billion. August's trade deficit was revised, from $46.347 to $46.5 billion. The decline in the trade deficit was due to a $2.0 billion drop in imports. Exports increased $0.5 billion. China alone was 47.5% of the trade deficit. On a Balance of Payments basis, so far this year the trade deficit is -$379,116 billion, a 40.3% increase from last year.



U.S. export growth from last month is almost nil by percentages, imports dropped 9.97% from last month.

Imports were 1.29 times larger than exports for September, or in other words, for every dollar we export, we import $1.29 worth of stuff.

Below are imports vs. exports of goods and services from January 2007 to September 2010. Notice how much larger imports are than exports.



The measly export increase is food and notice industrial supply exports decreased.

The August to September increase in exports of goods reflected increases in foods, feeds, and beverages ($0.4 billion); other goods ($0.4 billion); capital goods ($0.3 billion); and consumer goods ($0.1 billion). Decreases
occurred in industrial supplies and materials ($0.9 billion) and automotive vehicles, parts, and engines ($0.1 billion).

Most of the decrease in imports was consumer goods and automotive. Capital Goods are products which are used to make more stuff.

The August to September decrease in imports of goods reflected decreases in consumer goods ($1.9 billion); automotive vehicles, parts, and engines ($1.4 billion); and other goods ($0.3 billion). Increases occurred in capital goods ($1.3 billion) and industrial supplies and materials ($0.1 billion).

Advanced technology, ya know those jobs of the future, has a deficit of $9.0 billion. Last month the deficit was $8.8 billion.

Advanced technology products exports were $23.0 billion in September and imports were $31.9 billion, resulting in a deficit of $9.0 billion. September exports were $1.1 billion more than the $21.8 billion in August, while September imports were $1.3 billion more than the $30.6 billion in August.

Here is the breakdown with major trading partners. China alone is a $27.8 billion dollar trade deficit. The trade deficit with China exceeds the next largest trading partner, OPEC (read oil, $8.9 billion), by over over 3 to 1. Did you know we run a trade deficit with Europe? Even Ireland kicks our ass.

The September figures show surpluses, in billions of dollars, with Hong Kong $2.3 ($1.9 for August), Australia $1.2 ($1.0), Singapore $0.7 ($1.1), and Egypt $0.6 ($0.4).

Deficits were recorded, in billions of dollars, with China $27.8 ($28.0), OPEC $8.9 ($9.0), European Union $6.1 ($8.1), Mexico $5.8 ($6.0), Japan $5.0 ($5.8), Germany $2.7 ($3.4), Nigeria $2.5 ($2.7), Ireland $2.2 ($2.5), Venezuela $1.9 ($2.2), Korea $1.3 ($1.3), Canada $1.1 ($2.2), and Taiwan $0.9 ($1.2).

Below is the raw customs basis accounting of Chinese imports into the United States, not seasonally adjusted.



Below is a graph of China imports into the United States from 1985, to show just how much imports from China have grown. The visual is stunning, it looks like a rocket pointed directly at the U.S. economy.



Going into the details.....

By end use categories, not chain weighted dollars, the U.S. is exporting Meat, Soybeans, Industrial Gold, Chemicals, Plastics and Fuel Oil. Quite a bit of other industrial machines and a good one, semiconductors. The U.S. also exports over $3.5 billion in pharmaceutical preparations. Did you know the United States exported over $1 billion in newsprint?

In September, the United States imported $20.864 billion worth of crude oil. While the current focus is on China, we should not forget how badly oil prices and the oil trade deficit also affects the U.S. economy.

The U.S. imported $5.244 billion worth of computers and $4.346 billion in telecommunications equipment. We invented it, now we import it.

To get a feel for what's going on in terms of imports and exports by end-use categories, I suggest looking over exhibits 7 & 8 from the trade report.

Here is August's report (unrevised).

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