US Balance of Payments Increased 1.6% in October

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The US balance of payments moved 1.6% in the direction of exports to -$43.4 billion, $-28.1 billion of which is the US-China balance. Imports to China were up 3.8% to $37.8 billion, exports up 16.4% to $9.7 billion.

Most US imports and exports increased slightly. Imports from Canada decreased 716 million or 2.6%. Export to the UK decreased 13.8% to 4.5 billion.

Since US trade balance is a component of GDP, this helps account for a portion of the Q3 GDP increase.

-From the St. Louis Federal Reserve and the Bureau of Economic Analysis

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2 Responses to “US Balance of Payments Increased 1.6% in October”

  1. bling purse Says:

    Please elaborate, i’m bit confused

    • danielsaniski Says:

      The US Balance of payments measures Exports minus Imports. If it increases (i.e. moves in a positive direction), that means there were more exports than imports compared to previous months. Though it’s still well below zero, implying that the US is a net importer.

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