Archive for the 'BEA News' Category

February 2014 Trade Gap Is $42.3 Billion

The U.S. monthly international trade deficit increased in February 2014 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit increased from $39.3 billion in January (revised) to $42.3 billion in February as exports decreased and imports increased. The previously published January deficit was $39.1 billion. The goods deficit increased $2.2 billion from January to $61.7 billion in February; the services surplus decreased $0.8 billion from January to $19.4 billion in February.MonthlyTrade_Feb2014

Exports
Exports of goods and services decreased $2.0 billion in February to $190.4 billion, reflecting a decrease in exports of goods. Exports of services were nearly unchanged.

  • The decrease in exports of goods mostly reflected decreases in industrial supplies and materials and in capital goods that were partly offset by increases in consumer goods and in other goods.
  • Exports of services were nearly unchanged. Increases in other private services, which includes items such as business, professional, and technical services, insurance services, and financial services, and in royalties and license fees were mostly offset by a decrease in passenger fares.

Imports
Imports of goods and services increased $1.0 billion in February to $232.7 billion, mostly reflecting an increase in imports of services. Imports of goods also increased.*

  • The increase in imports of services was mainly accounted for by an increase in royalties and license fees, which included payments for the rights to broadcast the 2014 Winter Olympic Games.
  • The increase in imports of goods mostly reflected an increase in automotive vehicles, parts, and engines. Capital goods decreased.

Goods by geographic area (not seasonally adjusted)

  • The goods deficit with Canada decreased from $4.0 billion in January to $1.9 billion in February. Exports increased $0.8 billion to $23.5 billion, and imports decreased $1.3 billion to $25.4 billion.
  • The goods deficit with China decreased from $27.8 billion in January to $20.9 billion in February. Exports decreased $0.5 billion to $9.9 billion, and imports decreased $7.5 billion to $30.7 billion.
  • The goods deficit with Mexico increased from $2.8 billion in January to $4.0 billion in February. Exports decreased $0.8 billion to $18.3 billion, and imports increased $0.4 billion to $22.3 billion.

* In February, imports of goods on a balance of payments basis increased, but imports of goods on a Census basis decreased. Total goods data are reported on a balance of payments basis. Commodity and country data for goods are on a Census basis. Monthly statistics are seasonally adjusted unless otherwise specified.

Read the full report.

Real Consumer Spending Rises in February

PersInc_Feb_2014Personal income increased 0.3 percent in February, the same as in January. Wages and salaries, the largest component of personal income, increased 0.2 percent after increasing 0.3 percent.

Current-dollar disposable personal income (DPI), after-tax income, increased 0.3 percent in February, the same as in January.

Real DPI, income adjusted for taxes and inflation, increased 0.3 percent in February after increasing 0.2 percent in January.

Real consumer spending, spending adjusted for price changes, increased 0.2 percent in February after increasing 0.1 percent in January. Spending on nondurable goods increased 0.3 percent after decreasing 0.9 percent.

PCE prices increased 0.1 percent in February, the same increase as in January. Excluding food and energy, PCE prices rose 0.1 percent in February.

Personal saving as a percent of DPI–the personal saving rate–was 4.3 percent in February and 4.2 percent in January.

Read the full report.

PersInc_Feb_2014_Chart

GDP Growth Slows In Fourth Quarter

Real gross domestic product (GDP) increased 2.6 percent in the fourth quarter of 2013, according to the “third” estimate released by the Bureau of Economic Analysis. The growth rate was 0.2 percentage point more than the “second” estimate released in February. In the third quarter, the growth rate was 4.1 percent.

Fourth-quarter GDP highlightsGDP_4q_3rd_2013
Consumer spending rose 3.3 percent, the highest since the fourth quarter of 2010, reflecting spending on housing and utilities, health care, and food services and accommodations. In the  third quarter, consumer spending rose 2.0 percent. Exports also accelerated in the fourth quarter.

These accelerations were more than offset, however, by a downturn in inventory investment, a  larger decrease in federal government spending, and a downturn in housing investment.

GDP revisions
The upward revision to real GDP growth reflected the incorporation of newly available source data. Consumer spending was revised up (mainly services), while business investment (mainly intellectual property products) and inventory investment were revised down.

Personal income and personal saving
Real disposable personal income (DPI)—personal income adjusted for inflation and taxes—increased 0.8 percent in the fourth quarter, compared with 3.0 percent in the third quarter. Personal saving as a percent of DPI was 4.3 percent in the fourth quarter, compared with 4.9 percent in the third quarter.

Fourth-quarter corporate profitsCorpProfits4q_2013
Profits grew 2.2 percent at a quarterly rate, compared with 1.9 percent in the third quarter.
Profits of nonfinancial corporations rose 1.5 percent, profits of financial corporations rose 1.3 percent, and profits from the rest of the world rose 5.5 percent.

Annual corporate profits
In 2013, corporate profits rose 4.6 percent at an annual rate, compared with 7.0 percent in 2012. Profits of nonfinancial corporations rose 5.2 percent, profits of financial corporations rose 8.2 percent, and profits from the rest of the world fell 0.7 percent.

Read the full report.