Question

What exported goods increased and what decreased? How might that be explained?

U.S. International Trade in Goods and Services, October 2018 Goods and Services Trade Deficit Seasonally adjusted October 2018 $55.5 billion Billion $ 60 September 2018 $54.6 billion Monthly deficit The U.S. monthly international trade deficit increased in October 2018 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit increased from $54.6 billion in September (revised) to $55.5 billion in October, as exports decreased and imports increased. The previously published September deficit was $54.0 billion. The goods deficit increased $0.9 billion in October to $78.1 billion. The services surplus decreased $0.1 billion in October to $22.6 billion. 50 45 40 35 0 moving average October 2016 October 2017 October 2018 U.S. Bureau of Economic Analysis U.S. Census Bureau U.S. International Trade in Goods and Services December 6, 2018 Current Release Current Release: December 6, 2018 Next release: January 8, 2019

This is entire question I broke it down into different questions.

Did the trade deficit increase of decrease for the current period? For the year so far? Which exported services increased in the latest period? Which decreased? What might explain those changes? What exported goods increased? What decreased? How might that be explained?

Answer 1

The U.S Bureau of Economic Analysis published its census on U S international Trade in Goods and Services on December, 6, 2018. The census reveals the following facts regarding the international trade of the U S economy. It reveals that the U S trade deficit increased from $54.6 billion from September 2018 to $55.5 billion in December 2018. The trade deficit is the value by which a country’s import exceeds its export. If a country’s export value is greater than the cost of import the country is said to be in trade surplus. One can calculate a trade deficit by subtracting the total value of a country’s export from the total value of its import. A trade deficit occurs when a country does not produce and export as much. It depends heavily on foreign countries for the import of needed goods.

A country’s foreign trade consists of import and export of all types of goods and services. The reason of U S trade deficit is the decrease in its export as well as the increase in its import.

During the month of October 2018, U S exports were $211.0 billion which is $0.3 billion less than in September. Similarly the U S import register an increase compared to the past month. The U S imports were $266.5 billion which is $0.6 billion more than the imports in September. The increased deficit in goods and services was due to the fact that the export increased only by $149.3 billion or by 7.7% in 2018 compared to the year 2017 and import increased about $200.6 billion or 8.4% in 2018 compared to the year 2017. This increased volume of import and decrease in the volume of export caused trade deficit in U S.

On an average of three months U S export increased by $0.4 billion and import increased to $2.1 billion in the months ending in October 2018.

On a yearly average ending from October 2017 to October 2018 the U S export increased by $12.7 billion and import increased by $22.1 billion. Both the monthly average and yearly average shows that U S import increase is greater than the increase in export and this cause trade deficit in U S.

The reason of ever increasing trade deficit in U S is the mismatch of import and export of the following goods and services. The U S economy registers a decrease in the export and increase in the import of the following items.

1. The export of Foods, feeds and beverages decreased by $0.7 billion in October 2018.

2. Export of capital goods decreased by $ 0.5 billion.

3. The export of industrial supplies and materials increased by $0.3 billion.

4. The import of consumer goods increased by $2.0 billion.

5. The import of other goods increased to $0.8 billion.

6. The import of automotive vehicles, parts and engines registered an increased by $0.7 billion.

7. The import of capital goods decreased to $3.2 billion.

The overall reduction in U S export and increase in import register an increase in trade deficit in U S economy