Slight dip in overall exports, but numbers bodes well for US economy.
By Deepak Chitnis
WASHINGTON, DC: The US saw a decrease in exports but an increase in imports, especially from India, according to the trade numbers for the month of July, released by the US Department of Commerce.
America’s trade with India accounted for $1.89 billion in exports and $3.95 billion in imports during the month of July, with a monthly deficit of $2.07 billion. The total US deficit with India in 2013 reached $12.27 billion.
This is actually slightly less than the US-India trade deficit at the same time last year, which was roughly $12.31 billion; the number at the end of 2012 ended up being around $18.41 billion, with a breakdown of $22.11 billion in exports to India and $40.51 billion in imports from India.
The US’s overall deficit number is arguably the most eye-catching statistic in the 50-page report, which was released Wednesday. The trade deficit at the end of June was $34.5 billion, which was a slight rise over what it had been the month before, giving analysts cautious optimism that the slow rise in the deficit meant that trade was improving, albeit slightly. Instead, the deficit spiked 13% in July – the “goods and services deficit” now stands at just over $39 billion.
There is good news to be found in the report, however. Imports totaled $228.6 billion, a healthy increase from the $225.1 billion of the previous month. Imports on crude oil increased just over 6%, largely due to an increase in prices due to political uncertainty in the Middle East. Imports of automobile vehicles and parts rose 3.1%, and consumer goods like clothes and electronics rose 1.6% in July.
The decrease in exports – $189.4 billion in July, down from the $190.5 billion in July – is still the second-highest export level ever for the US. Analysts expected the export number to come down after its record high in June, but its relatively small dip is a good sign and bodes well for the increasing strength of the US economy, despite economic difficulties in other parts of the globe.
To contact the author, email to deepakchitnis@americanbazaaronline.com