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Trade in Digitally Enabled Services Shows Strong Growth

Published September 3, 2012 BEA News , Trade in Goods and Services Leave a Comment
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U.S. trade in services enabled by digital technologies grew at a faster pace than trade in all other services in recent years, a new analysis by the Bureau of Economic Analysis (BEA) shows. Information and communications technologies (ICT) play an important role in cross-border trade in services, and improvements in these digital technologies and reductions in their costs have played an important role in contributing to growth in trade in services.

Several organizations, including the United Nations and the Organization for Economic Cooperation and Development (OECD), have defined ICT-enabled trade in services. From these definitions, BEA has identified the categories of ICT-enabled services in its own trade in services statistics as royalties and license fees; insurance; financial services; telecommunications; and business, professional, and technical services (except construction). Isolating these categories of services shows that as digital technologies have advanced and become cheaper in recent years, trade in ICT-enabled services has shown strong growth and increased as a share of all services trade.

U.S. exports
From 1998 to 2010, ICT-enabled services exports grew at an average annual rate of 9 percent, compared with a growth rate of 3 percent for all other services exports. During this period:
• The share of private services exports composed of ICT-enabled services increased from 45 to 61 percent.
• The fastest average annual growth was in insurance services (13 percent) and financial services (12 percent).

U.S. imports
From 1998 to 2010, ICT-enabled services imports grew at an average annual rate of 10 percent, compared with a growth rate of 3 percent for all other services imports. During this period:
• The share of all private services imports attributable to ICT-enabled services increased from 34 to 56 percent.
• The fastest average annual growth was in insurance services (17 percent) and business, professional, and technical services (11 percent).

Worldwide
A similar analysis of OECD trade in services data indicates that worldwide trends in ICT-enabled services trade have been moving in the same direction as those of the United States. From 2002 to 2008, for a set of countries responsible for the majority of worldwide trade:
• The share of global services exports attributable to ICT-enabled services grew from 47 to 52 percent.
• The share of global services imports attributable to ICT-enabled services grew from 43 to 46 percent.

For the details behind the analysis and to learn more about the recent trends in ICT-enabled trade in services, read the full report.

June Trade Gap is $42.9 Billion

Published August 9, 2012 BEA News , Trade Deficit , Trade in Goods and Services Leave a Comment
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The U.S. monthly international trade deficit decreased in June 2012, according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit decreased from $48.0 billion (revised) in May to $42.9 billion in June, as exports increased and imports decreased. The previously published May deficit was $48.7 billion. The goods deficit decreased $5.4 billion from May to $57.5 billion in June, and the services surplus decreased $0.3 billion to $14.6 billion.

Exports of goods and services increased $1.7 billion in June to $185.0 billion, reflecting an increase in exports of goods. Exports of services decreased.

The increase in exports of goods was more than accounted for by increases in consumer goods; automotive vehicles, parts, and engines; and industrial supplies and materials. A decrease in foods, feeds, and beverages was partly offsetting.

The decrease in exports of services was mostly accounted for by decreases in other private services, which includes items such as business, professional, and technical services; insurance services; and financial services, and other transportation, which includes freight and port services. Changes in the other categories of services exports were small. 

Imports of goods and services decreased $3.5 billion in June to $227.9 billion, reflecting a decrease in imports of goods. Imports of services increased.

The decrease in imports of goods was more than accounted for by decreases in industrial supplies and materials, capital goods, and consumer goods. An increase in automotive vehicles, parts, and engines was partly offsetting.

The increase in imports of services was mostly accounted for by an increase in passenger fares. Changes in the other categories of services imports were small.

Goods by geographic area (not seasonally adjusted)
The goods deficit with Japan decreased from $6.4 billion in May to $6.0 billion in June. Exports increased $0.3 billion to $6.0 billion, while imports decreased $0.2 billion to $11.9 billion.

The goods deficit with China increased from $26.0 billion in May to $27.4 billion in June. Exports decreased $0.4 billion to $8.5 billion, while imports increased $1.0 billion to $35.9 billion.

The goods deficit with the European Union decreased from $10.5 billion in May to $8.4 billion in June. Exports increased $0.4 billion to $23.3 billion, while imports decreased $1.7 billion to $31.7 billion.

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

 

May Trade Gap is $48.7 Billion

Published July 11, 2012 BEA News , International , Trade Deficit , Trade in Goods and Services Leave a Comment
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The U.S. monthly international trade deficit decreased in May, according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit decreased from $50.6 billion (revised) in April to $48.7 billion in May, as imports decreased and exports increased. The previously published April deficit was $50.1 billion. The goods deficit decreased $1.6 billion from April to $63.5 billion in May, and the services surplus increased $0.3 billion to $14.8 billion.

Exports of goods and services increased $0.4 billion in May to $183.1 billion, mostly reflecting an increase in exports of services. Exports of goods also increased.

The increase in exports of goods was more than accounted for by increases in foods, feeds, and beverages and capital goods. A decrease in industrial supplies and materials was partly offsetting.

The increase in exports of services was mostly accounted for by increases in other private services, which includes items such as business, professional, and technical services, insurance services, financial services, and passenger fares. Changes in the other categories of services exports were small.

Imports of goods and services decreased $1.6 billion in May to $231.8 billion, reflecting a decrease in imports of goods. Imports of services increased.

The decrease in imports of goods was more than accounted for by a decrease in industrial supplies and materials. An increase in capital goods was partly offsetting.

The increase in imports of services was more than accounted for by an increase in other private services. A decrease in passenger fares was partly offsetting. Changes in the other categories of services imports were small.

Goods by geographic area (not seasonally adjusted)
The goods deficit with Canada decreased from $3.3 billion in April to $2.2 billion in May. Exports increased $1.2 billion to $25.6 billion, while imports increased $0.1 billion to $27.8 billion.

The goods deficit with China increased from $24.6 billion in April to $26.0 billion in May. Exports increased $0.4 billion to $8.9 billion, while imports increased $1.9 billion to $34.9 billion.

The goods deficit with Mexico increased from $5.4 billion in April to $6.3 billion in May. Exports increased $1.2 billion to $18.5 billion, while imports increased $2.1 billion to $24.9 billion.

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

New Study Provides Profile of U.S. Firms that Export and Import Services

Published June 21, 2012 BEA News , International , Trade Deficit , Trade in Goods and Services Leave a Comment
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Chart of trading partnersData from the Bureau of Economic Analysis (BEA) show that the United States has historically maintained a trade surplus in private services.  So what types of firms are involved in this kind of trade abroad?  Thanks to a new BEA study we have a better understanding of the kinds of American companies that export and import services.

Here are some of the key findings:

• Firms in industries typically associated with the production or sales of manufactured goods are significant services traders, accounting for more than 25 percent of exports and imports covered by the study.  Trade in services by manufacturers largely consists of transactions related to the use or creation of intellectual property, the provision of headquarters’ management and support services, or the allocation of expenses.

• Multinational companies, especially U.S. parent companies, are important services traders, accounting for more than 80 percent of trade in services with both affiliated (their own foreign branches) and unaffiliated parties.  U.S. parents tend to have larger transactions, trade with more countries, and trade more service types as compared to U.S. affiliates of foreign parents and non-multinationals.Chart of services types traded

• Business, professional, and technical services, especially research and development, testing services, and management and consulting services, accounted for more than one third of trade by both U.S. parents and U.S. affiliates.

• Many small firms engage in services trade, but large firms dominate the value of trade.

• The trade in services of multinational companies is dominated by transactions with their affiliated parties.  This is especially true for business, professional, and technical services, and royalties and license fees.  Financial services trade, such as brokerage and advisory and management services, is primarily with unaffiliated parties.  Those findings are based on a new data set that combines data from surveys on cross-border trade in services with data on the operations of multinational companies.

In 2008, trade in services included in the study—financial services; insurance; royalties and license fees; telecommunications; and business, professional, and technical services (excluding medical services)—totaled $302.3 billion in exports and $195.6 billion in imports, resulting in a surplus on trade of $106.7 billion.  These services accounted for more than half of total private services exports and imports, and nearly three-quarters of the $148.3 billion U.S. surplus on private services trade in 2008. To learn more about the characteristics of U.S. exporters and importers of services, read the full article.

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