US service exports decrease in 2Q20

Exports of services from the United States fell 46.3 billion dollars, to 155.8 billion, reported this Friday the Department of Commerce.

In turn, services imports fell $ 35.4 billion to $ 101.3 billion.

The decreases in both exports and imports mainly reflected declines in travel, especially other personal travel, and in transportation, especially in passenger air transport.

Overall, the U.S. current account deficit, which reflects the combined balances of trade in goods and services and income flows between residents and residents of other countries, increased by $ 59 billion, or 52.9%, to $ 170.5 billion in the second quarter of 2020.

Exports and deficit

The revised deficit for the first quarter was $ 111.5 billion, while the deficit for the second quarter was 3.5% of Gross Domestic Product in current dollars, compared to 2.1% in the first quarter.

The $ 59 billion widening of the current account deficit in the second quarter primarily reflected an increase in the goods deficit and a reduction in primary income and services surpluses.

Exports of goods fell 114.6 billion dollars, to 288.9 billion, mainly reflecting declines in supplies and industrial materials, mainly oil and products; in capital goods, including civil aircraft, engines and spare parts; and in motor vehicles, parts and engines, notably parts and engines and passenger cars.

Imports of goods fell $ 87.1 billion to $ 508.2 billion, mainly reflecting declines in vehicles, automotive parts and engines, especially parts and engines and passenger cars, and in industrial supplies and materials, especially oil and products.