Export of goods and services rose to $1.21 trillion while their imports increased to $1.52 trillion: BEA report
The U.S. foreign trade deficit widened by $35.9 billion, or 13.1 percent, to $310.9 billion in the third quarter of 2024, a Bureau of Economic Analysis (BEA) report says. The revised deficit, also called current-account deficit, which reflects the combined balances on trade in goods and services and income flows between U.S. residents and residents of other countries, was $275 billion in the second quarter.
The increase in current-account deficit is significant ahead of Donald Trump's return to the White House amid policy uncertainties.
Sponsored
The third-quarter deficit was estimated at 4.2 percent of current-dollar gross domestic product, up from 3.7 percent in the previous quarter.
The increase in current-account deficit in the third quarter reflected expanded deficits on secondary income, on primary income, on goods, a BEA press release said.
While exports of goods and services to, and income received from, foreign residents rose by $6 billion to $1.21 trillion in the third quarter, imports of goods and services from, and income paid to, foreign residents increased $42 billion to $1.52 trillion.
Exports of goods increased $13.6 billion to $530 billion, showing an increase in capital goods, mostly semiconductors; computer accessories, peripherals, and parts; and civilian aircraft. Imports of goods jumped up $23.7 billion to $837.2 billion, marking increases in capital goods, mostly computer accessories, peripherals, and parts; electric-generating machinery, electric apparatus, and parts; and computers, and in consumer goods, mainly medicinal, dental, and pharmaceutical products.
Trade in services expands
However, exports of services expanded by $7.7 billion to $279.9 billion, following increases in government goods and services, mostly military units and agencies, and in telecommunications, computer, and information services, mostly computer services. Imports of services increased by $6 billion to $206.2 billion, reflecting increases in charges for the use of intellectual property, mostly licenses to reproduce and/or distribute audiovisual products, and in insurance services, mostly reinsurance.
Drop in direct investment income
A drop in primary income by $15.5 billion to $345.7 billion, marking a decrease in direct investment income, mainly earnings. Payments of primary income fell by $3.8 billion to $361.2 billion, following decreases in direct investment income, mainly earnings, and in portfolio investment income, especially interest on long-term debt securities.
Secondary income expands
The country’s receipts of secondary income, on the other hand, increased by $0.2 billion to $50.2 billion, reflecting a rise in private transfers, mostly insurance-related transfers. Payments of secondary income increased $16.1 billion to $112.0 billion, reflecting an increase in general government transfers, mostly international cooperation.
Increase in capital-transfer payments
Capital transfer receipts formed $1.6 billion in the third quarter. The transactions included receipts from foreign insurance companies for losses resulting from Hurricane Helene. Capital-transfer payments increased by $1.8 billion to $3.3 billion, reflecting an increase in infrastructure grants, the report said.
Net financial-account transactions were down by $493.6 billion in the third quarter, reflecting net U.S. borrowing from foreign residents.
Sponsored