by Calculated Risk on 10/13/2005 08:30:00 AM

UPDATE: As always on Trade Deficit / Current Account issues, Dr. Setser has some great insights (on other issues too!): Relative prices do matter

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis released the monthly trade balance report today for August:

"... total August exports of $108.2 billion and imports of $167.2 billion resulted in a goods and services deficit of $59.0 billion, compared with $58.0 billion in July, revised.

August exports were $1.8 billion more than July exports of $106.4 billion. August imports were $2.9 billion more than July imports of $164.3 Billion."

Note: all numbers are seasonally adjusted.


Click on graph for larger image.

August 2005 was 15% worse than August 2004. For the first eight months of 2005, the trade deficits is up 17% over the same period in 2004.

Imports from China set another record of $22,365 Billion. Imports from Japan were up slightly to $11,552 Billion.


The average contract price for oil set a new record of $52.65 per barrel breaking the old record of $49.03 in July.

The SA petroleum trade deficit set another record of $20.6 Billion.

With record imports from China and a record petroleum deficit, I'm surprised that the overall trade deficit wasn't a record; but it was close. The September deficit will be impacted by Katrina and most likely be another record.