Courtesy of Mish.
Today the US Commerce department report on International Trade in Goods and Services shows the trade deficit rose by $6.6 billion to $48.3 billion. The numbers are for August, very backwards looking given it is now October.
August exports were $185.1 billion, $3.7 billion less than July exports. August imports were $233.4 billion, $2.8 billion more than July imports.
Balance of Trade Since August 2013
Balance of Trade Moving Average
iPhone Connection
The increased deficit was widely expected, in line with the Bloomberg Economic Consensus of -48.6 billion.
A surge in imports of new iPhones helped feed what was an unusually wide trade gap in August of $48.3 billion, well up from July's revised $41.8 billion. But cell phones, at $2.1 billion, make up only a portion of the gap with a drop in exports the most salient factor. Exports were down nearly across the board including industrial supplies at minus $2.2 billion, consumer goods at minus $0.6 million, autos at minus $0.5 million, and foods/feeds/beverages at minus $0.3 million. Weakness in exports reflects weakness in foreign demand together with the strength of the dollar.
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