The trade deficit fell a bit more across the Atlantic. It reached 67.4 billion euros in August and registered a drop of 4.3% compared to July, according to data published this Wednesday by the US Department of Commerce.
In July, the US trade deficit fell particularly sharply (12.6%). In August, the indicator is close to the expectations of analysts, who had forecast 67.7 billion dollars.
The US trade deficit has been shrinking for several months, but this month marks the smallest drop since May 2021, according to consultancy HFE. For July and August, the average trade deficit is 68.9 billion dollars, which confirms the slowdown observed compared to the two previous quarters (94.3 billion in the first, 84.5 billion in the second), the office also notes.
$700 million fall in exports
In detail, exports of goods fell 700 million dollars in the quarter, mainly due to the fall in the price of raw materials, while services fell 100 million dollars, due to the slowdown in tourism. On the import side, the fall mainly affects raw materials and industrial goods, especially oil derivatives, while the automobile sector is on the rise.
The trade deficit with China, which continues to be the United States’ largest trading partner, has fallen again, very sharply, from 100.8 billion dollars in July to 33.5 billion dollars in August. This fall, both in imports and exports, should continue, between the still offensive policy of the US central bank (Fed) to fight inflation that is falling more slowly than expected, with a particularly expected impact on unemployment despite a labor market that remains dynamic.
The risks of a global slowdown weigh more and more, while the euro zone in particular seems to be headed for a more or less deep recession in 2023. Exports fell by 0.3% while imports fell by 1.1%.
Source: BFM TV
