U.S. Trade Deficit, Canadian Trade Surplus Increase

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Meanwhile, here are the major headlines from the last week:

• The overall U.S. trade deficit rose to a record level of $80.9 billion in September. That reading was up from $72.8 billion in August. Imports and exports both fell in September. The goods deficit increased $8.9 billion in September to $98.2 billion while the services surplus rose $0.8 billion. Year-to-date, the goods and services deficit increased $158.7 billion, or 33.1 percent, from the same period in 2020. Read the full report here. (https://www.bea.gov/news/2021/us-international-trade-goods-and-services-september-2021)
• Canada’s trade surplus beat expectations, rising to C$1.86 billion in September even as exports declined due to a semi-conductor chip shortage that weighed on motor vehicle and parts production. The drop in exports was offset by the fact that imports also were down, declining three percent for the month. Read the full report here.
• New orders for manufactured goods in the United States rose 0.2 percent in September to $515.9 billion while shipments increased 0.6 percent to $511.5 billion. Unfilled orders rose 0.7 percent and the unfilled orders-to-shipments ratio was 6.84, down from 6.85 in August. Inventories also were up, rising 0.8 percent to $756.9 billion. The inventories-to-shipments ratio was 1.48, unchanged from August.
• The Institute for Supply Management’s purchasing managers index (PMI) for the United States fell to 60.8 percent in October, a decrease of 0.3 percentage points from September’s 61.1 percent. Readings for production and new orders fell, but the employment index improved. Read the full report here.
• The U.S. economy added 531,000 jobs in October and the nation’s unemployment rate fell 0.2 percentage points to 4.6 percent. Job growth was widespread and included the addition of 60,000 manufacturing jobs. In other employment news, the U.S. Department of Labor said the number of individuals receiving federal unemployment benefits was near its pandemic low during the week that ended October 23. Read that report here.
• After returning to its pre-pandemic level in September, Canadian employment held steady in October with employers adding 31,000 jobs. The unemployment rate fell by 0.2 percentage points to 6.7 percent. Read the full report here.
• In other economic news: U.S. construction spending fell 0.5 percent between August 2021 and September 2021, but rose 7.8 percent between September 2021 and October 2021; nonfarm U.S. business sector labor productivity fell five percent in the third quarter of 2021 as output increased 1.7 percent and hours worked rose seven percent.