U.S. Trade Deficit, Canadian Trade Surplus Shrank In August
- According to the U.S. Bureau of Economic Analysis, the nation’s goods and services trade deficit was $70.1 billion in July, down $3.2 billion from $73.2 billion in June. July exports were $212.8 billion, $2.8 billion more than June exports. July imports were $282.9 billion, $0.4 billion less than June imports. The July decrease in the goods and services deficit reflected a decrease in the goods deficit of $5.5 billion to $87.7 billion. Read the full report here. Year-to-date, the goods and services deficit increased $131 billion, or 37.1 percent, from the same period in 2020.
- Canada’s trade surplus narrowed by C$778 million in July as imports rose by 4.2 percent to hit a record high of C$53 billion. Exports rose just 0.6 percent to C$53.7 billion, but set a record as well.
- New orders for U.S. manufactured goods, up 14 of the last 15 months, increased 0.4 percent in July to $508.1 billion. Shipments, also up 14 of the last 15 months, jumped 1.6 percent to $508.5 billion. Unfilled orders rose 0.3 percent while the unfilled orders-to-shipments ratio was 6.79, down from 6.9 in June. Inventories, up 13 of the last 14 months, rose 0.5 percent to $744.4 billion. The inventories-to-shipments ratio was 1.46, down from 1.48 in June. Read the full report here.
- The Institute for Supply Management’s purchasing managers’ index (PMI) for the United States registered 59.9 percent in August, an increase of 0.4 percentage points from the July reading of 59.5 percent. That figure indicated expansion in the overall economy for the 15th month in a row. New orders and production both strengthened. Read the full report here.
- According to the IHS/Markit PMI for Canada, Canadian manufacturers recorded another robust expansion in manufacturing conditions with the PMI hitting a four-month high in August. Increases in output, new orders, exports, and purchases fueled the growth. Read the full report here.
- The U.S. economy added 235,000 in August and the unemployment rate declined by 0.2 percentage point to 5.2 percent. So far this year, monthly job growth has averaged 586,000. Manufacturers added 37,000 jobs last month. Read the full report here. In other employment-related news: the U.S. Department of Labor announced that, during the week that ended August 28, 2021, 340,000 U.S. residents filed for federal unemployment benefits for the first time, a decrease of 14,000 from the previous week’s level. This number was at its lowest level since March 14, 2020 when it was 256,000. The four-week moving average of first-time claims was 355,000, a decrease of 11,750 from the previous week’s average. That number was at its lowest point since March 14, 2020 when it was 225,500.
- The Federal Reserve Bank of Dallas announced last week that Texas factory activity continued to increase in August though at a slower pace. The bank’s production index fell 10 points to +20.8, but is still well above average and indicative of robust output growth. The new orders index came in at +15.6, down from +26.8, but more than double the series average of 6.5, and the growth rate of orders index fell 15 points to 10.7. Read the full report here.
- In other economic news: U.S. non-farm business sector labor productivity increased 2.1 percent in the second quarter of 2021 due to an 8.1 percent increase in output and a six percent increases in hours worked; U.S. construction spending increased 0.3 percent between June 2021 and July 2021 and nine percent from July 2020 to July 2021; and the Conference Board’s index of consumer confidence fell to 113.8, down from 125.1 in July.