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US international trade increased in August 2006, with total imports and exports at $314.7 billion. The U.S. international trade deficit in goods and services increased 2.7% in August 2006. Exports rose 2.3%, but imports increased 2.4%, leading to an increased trade deficit. Exports were $122.4 billion, imports were $192.3 billion and the trade deficit stood at $69.9 billion.

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U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES
August 2006

Goods and Services

The U.S. Census Bureau and the U.S. Bureau of
Economic Analysis, through the Department of
Commerce, announced today that total August exports of
$122.4 billion and imports of $192.3 billion resulted in
a goods and services deficit of $69.9 billion, $1.9 billion
more than the $68.0 billion in July, revised. August
exports were $2.7 billion more than July exports of
$119.7 billion. August imports were $4.6 billion more
than July imports of $187.7 billion.

In August, the goods deficit increased $2.1 billion from
July to $75.5 billion, and the services surplus increased $0.2
billion to $5.7 billion. Exports of goods increased $2.5
billion to $88.0 billion, and imports of goods increased $4.6
billion to $163.5 billion. Exports of services increased $0.2
billion to $34.4 billion, and imports of services decreased
$0.1 billion to $28.8 billion.

In August, the goods and services deficit was up $11.1
billion from August 2005. Exports were up $14.4 billion, or
13.4 percent, and imports were up $25.5 billion, or 15.3
percent.

Goods

The July to August change in exports of goods reflected
increases in capital goods ($1.3 billion); industrial supplies
and materials ($0.5 billion); other goods ($0.4 billion);
foods, feeds, and beverages ($0.4 billion); and consumer
goods ($0.2 billion). A decrease occurred in automotive
vehicles, parts, and engines ($0.1 billion).

The July to August change in imports of goods
reflected increases in industrial supplies and materials
($2.0 billion); capital goods ($1.0 billion); consumer
goods ($0.7 billion); automotive vehicles, parts, and
engines ($0.5 billion); foods, feeds, and beverages ($0.2
billion); and other goods ($0.2 billion).

The August 2005 to August 2006 change in exports of
goods reflected increases in capital goods ($3.9 billion);
industrial supplies and materials ($3.6 billion); consumer
goods ($1.5 billion); foods, feeds, and beverages ($1.1
billion); automotive vehicles, parts, and engines ($1.0
billion); and other goods ($0.8 billion).

The August 2005 to August 2006 change in imports of
goods reflected increases in industrial supplies and materials
($11.7 billion); capital goods ($4.5 billion); consumer goods
($4.2 billion); automotive vehicles, parts, and engines ($1.2
billion); foods, feeds, and beverages ($0.7 billion); and other
goods ($0.6 billion).

Services

Services exports increased $0.2 billion from July to
August. Increases in other transportation (which includes
freight and port services) and other private services (which
includes items such as business, professional, and technical
services, insurance services, and financial services) were
partly offset by a decrease in travel. Changes in other
categories of services exports were small.

Services imports decreased $0.1 billion from July to
August. Decreases in travel and royalties and license fees
were partly offset by an increase in other private services.
Changes in other categories of services imports were small.

From August 2005 to August 2006, services exports
increased $2.7 billion. The largest increases were in other
private services ($1.6 billion), other transportation ($0.7
billion), and royalties and license fees ($0.5 billion).

From August 2005 to August 2006, services imports
increased $2.6 billion. The largest increases were in other
private services ($1.4 billion) and other transportation ($0.5
billion).

Goods and Services Moving Average

For the three months ending in August, exports of goods
and services averaged $121.1 billion, while imports of goods
and services averaged $188.7 billion, resulting in an average
trade deficit of $67.6 billion. For the three months ending in
July, the average trade deficit was $66.1 billion, reflecting
average exports of $119.8 billion and average imports of
$185.9 billion.

Selected Not Seasonally Adjusted Goods Details

The August figures showed surpluses, in billions of
dollars, with Australia $0.9 ($0.7 for July), Hong Kong $0.7
($0.7), Singapore $0.4 ($0.1), Egypt $0.2 ($0.1), and
Argentina $0.1 ($0.1). Deficits were recorded, in billions of
dollars, with China $22.0 ($19.6), Europe $13.7 ($15.6),
OPEC $11.2 ($10.9), the European Union $11.0 ($13.4),
Japan $7.5 ($7.6), Mexico $6.2 ($5.1), Canada $6.1 ($5.9),
Taiwan $1.7 ($1.4), Korea $1.1 ($1.3), and Brazil $1.0 ($0.9).

Advanced technology products (ATP) exports were
$21.3 billion in August and imports were $24.9 billion,
resulting in a deficit of $3.6 billion. August exports were
$1.7 billion more than the $19.6 billion in July, while
imports were $0.7 billion more than the $24.2 billion in
July.

Revisions

Goods carry-over in August was $0.2 billion (0.2
percent) for exports and $2.0 billion (1.2 percent) for
imports. For July, revised export carry-over was $0.1 billion
(0.1 percent), revised down from $0.3 billion (0.3 percent).
For July, revised import carry-over was $0.3 billion (0.2
percent), revised down from $1.9 billion (1.2 percent).

Services exports for July were virtually unchanged at
$34.3 billion. Services imports for July were revised down
$0.1 billion to $28.8 billion; the revision was accounted for
by downward revisions in travel and passenger fares.

FT900: U.S. International Trade in Goods and Services