Archive for November, 2012



September 2012 Trade Gap is $41.5 Billion

The U.S. monthly international trade deficit decreased in September 2012, according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit decreased from $43.8 billion (revised) in August to $41.5 billion in September, as exports increased more than imports. The previously published August deficit was $44.2 billion. The goods deficit decreased $1.4 billion from August to $57.5 billion in September, and the services surplus increased $0.8 billion to $15.9 billion.

Exports
Exports of goods and services increased $5.6 billion in September to $187.0 billion, reflecting an increase in exports of goods. Exports of services also increased.
• The increase in exports of goods was mostly accounted for by increases in industrial supplies and materials and foods, feeds, and beverages.
• The increase in exports of services was accounted for by increases in travel and other private services, which includes items such as business, professional, and technical services, insurance services, and financial services.

Imports
Imports of goods and services increased $3.4 billion in September to $228.5 billion, reflecting an increase in imports of goods. Imports of services decreased.
• The increase in imports of goods mostly reflected increases in consumer goods and industrial supplies and materials. A decrease in automotive vehicles, parts, and engines was partly offsetting.
• The decrease in imports of services was more than accounted for by a decrease in royalties and license fees associated with cessation of payments for the rights to broadcast the 2012 Summer Olympic Games in July and August. An increase in other transportation, which includes freight and port services, was partly offsetting.

Goods by geographic area (not seasonally adjusted)
• The goods deficit with China increased from $28.7 billion in August to $29.1 billion in September. Exports increased $0.2 billion to $8.8 billion, while imports increased $0.6 billion to $37.8 billion.
• The goods deficit with the European Union decreased from $11.7 billion in August to $8.6 billion in September. Exports were virtually unchanged at $21.3 billion, while imports decreased $3.1 billion to $30.0 billion.
• The goods deficit with Japan decreased from $6.7 billion in August to $4.8 billion in September. Exports decreased $0.1 billion to $6.2 billion, while imports decreased $2.0 billion to $11.0 billion.

To learn more about U.S. international trade in goods and services, read the full report.

New Guide Helps Regional Developers, Planners Navigate RIMS II

People who conduct or examine local or regional economic impact studies will want to read a new handbook that offers some dos and don’ts on using the Bureau of Economic Analysis (BEA) Regional Input-Output Modeling System (RIMS II).

RIMS II, a regional economic model, is most frequently used by investors, regional planners, and government officials to gauge the economy-wide impact of a change in economic activity on a local community or a particular region of the country.

The new user’s guide, titled “RIMS II: An Essential Tool for Regional Developers and Planners,” has many useful features, including:
• Nearly a dozen case studies illustrating important concepts and applications of RIMS II multipliers
• Step-by-step instructions on how to appropriately use RIMS II multipliers for many different applications
• Techniques and suggestions to overcome limitations due to missing information

One case study details a university in Austin, Texas, that decides to offer a new graduate studies program. This new program is expected to generate an additional $10 million in payments to the university and draw students from all over the country.

Using the multipliers produced by RIMS II, the new program is expected to result in $21.9 million in new sales in Austin, including the $10 million received by the university. The remaining $11.9 million in sales comes from new purchases the university is expected to make and from new university workers spending more. For example, sales are expected to grow by $97,400 for professional and technical services and $87,800 for information services.

The RIMS II model is tailored to each customer’s needs, and its multipliers are available from BEA for a small processing fee. The new user’s guide is available on the RIMS II Web site.