The U.S. monthly international trade deficit decreased in October 2014 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit decreased from $43.6 billion in September (revised) to $43.4 billion in October, as exports increased more than imports. The previously published September deficit was $43.0 billion. The goods deficit increased less than $0.1 billion from September to $62.7 billion in October. The services surplus increased $0.1 billion from September to $19.2 billion in October.
Exports of goods and services increased $2.3 billion in October to $197.5 billion, mostly reflecting an increase in exports of goods. Exports of services also increased.
- The increase in exports of goods mostly reflected an increase in capital goods.
- The increase in exports of services reflected increases in financial services, in maintenance and repair services, and in charges for the use of intellectual property.
Imports of goods and services increased $2.1 billion in October to $241.0 billion, mostly reflecting an increase in imports of goods. Imports of services also increased.
- The increase in imports of goods was more than accounted for by increases in automotive vehicles, parts, and engines and in capital goods. A decrease in consumer goods was partly offsetting.
- The increase in imports of services mostly reflected an increase in transport, which includes freight and port services and passenger fares.
Goods by geographic area (seasonally adjusted, Census basis)
- The goods deficit with China decreased from $31.2 billion in September to $29.6 billion in October. Exports increased $1.6 billion to $11.4 billion and imports decreased $0.1 billion to $40.9 billion.
- The goods deficit with the European Union decreased from $12.5 billion in September to $11.2 billion in October. Exports increased $0.8 billion to $22.9 billion and imports decreased $0.4 billion to $34.2 billion.
- The goods deficit with Mexico increased from $4.8 billion in September to $5.4 billion in October. Exports increased $0.2 billion to $20.0 billion and imports increased $0.8 billion to $25.4 billion.
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Personal income rose 0.2 percent in October, the same increase as in September. Wages and salaries, the largest component of personal income, rose 0.3 percent in October after rising 0.2 percent in September.
Current-dollar disposable personal income (DPI), after-tax income, rose 0.2 percent in October after rising 0.1 percent in September.
Real DPI, income adjusted for taxes and inflation, increased 0.1 percent in October, the same increase as in September.
Real consumer spending, spending adjusted for price changes, increased 0.2 percent in October after remaining flat in September. Spending on nondurable goods increased 0.5 percent in October after decreasing 0.3 percent in September.
PCE prices increased 0.1 percent in October, the same increase as in September. Excluding food and energy, PCE prices increased 0.2 percent in October after increasing 0.1 percent in September.
Personal saving rate
Personal saving as a percent of DPI was 5.0 percent in October, the same as in September.
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Real gross domestic product (GDP) increased 3.9 percent in the third quarter of 2014, according to the “second” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 4.6 percent.
The increase in GDP in the third quarter reflected the following:
- Consumer spending increased 2.2 percent. Spending on goods and services both increased.
- Business investment rose, notably equipment and intellectual property products.
- Federal government spending increased, mainly national defense spending.
- Exports of goods increased, notably industrial supplies and materials.
In contrast, inventory investment declined in the third quarter.
The 0.4 percentage point upward revision to the GDP growth rate was more than accounted for by an upward revision to nonfarm inventory investment, notably in the wholesale trade and retail trade industries. Consumer spending on goods and business investment in equipment also were revised up. Partly offsetting these upward revisions, exports were revised down, and imports were revised up.
For more information, see the technical note.
Corporate profits increased 2.1 percent at a quarterly rate in the third quarter after increasing 8.4 percent in the second quarter.
- Profits of domestic nonfinancial corporations increased 1.8 percent after increasing 11.9 percent.
- Profits of domestic financial corporations increased 4.5 percent after increasing 8.0 percent.
- Profits from the rest of the world increased 0.3 percent after decreasing 0.9 percent.
Over the last 12 months, corporate profits rose 0.4 percent.
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