2Q came in at -$101.5B revised to -$101.2B
- Prior report
- Deficit comes in as expected at -$124.8B vs -$125.0B estimate (close enough there)
- The deficit widened from the -$101.2B in the 2Q
- As a percentage of U.S. GDP, the deficit increased to 2.4 percent from 2.0 percent.
- The increase mainly reflected a $24B increase in the deficit on goods (see chart below)
- Exports of goods and services income receipts fell -$6.2B in 3Q. Goods fell -$7.7B mostly reflecting a decrease in foods, feeds and beverages, primarily soybeans. China has been recently upping their purchase of soybeans as a good faith measure of the US/China trade talks.
- Service exports rose $1.8B mostly reflecting increases in charges for the use of intellectual property, in financial services, and in other business services, primarily professional and management services
- Goods imports increased $16.3B, mostly reflecting increases in consumer goods, primarily cell phones, in industrial supplies and materials, primarily petroleum and products, and automotive vehicles, parts, and engines.
You gotta think that the tariffs is having an impact on the numbers. With exports, China's slowing of soybean purchases are down. For imports of goods, what a better way to avoid tariffs but to get your goods to the US before tariffs are enacted (or raised).
