The trend of goods and services
In my own words, there was an upward trend on export of goods and services from October 2012. According to the report from Bureau of Economic Analysis website (bea.gov), October exports were $180.5 billion and the imports stood at $222.8 billion. This resulted in a goods and services deficit of $42.2 billion up from $40.3 billion in September 2012
The possible reasons behind the trend:
- Existence of tariffs on imports and trade barriers hence discouraging imports.
- Strength of the U.S currency was greater in relation to the countries it traded with.
Reasons as to why a business Owner /Manager will be interested in this information:
- It is important in decision making.
- It helps in good policy making.
- Enhances a proper marketing strategy.
- It enables proper focus on product launch.
Interpretation of data 2012 U.S international trade in goods and services:
In January, the goods and services deficit was $52.2 billion. In February, the deficit decreased to $44.5 billion. In March, the deficit increased by $7.1 billion and stood at $51.6 billion. As per the revised statistics, between March and June the deficit decreased by $10 billion to stand at $40.8 billion. This was due to a continuous increase in exports and decrease in imports. The deficit increased by $1 billion between July and August and decreased again in September to $40.2 billion. It finally increased in October and stood at $42.2 billion.
According to Bureau of Economic Analysis website (bea.gov), in the second quarter of 2012 the Gross Domestic Product was 1.3% and rose to 2.7% in the third quarter. Personal income was 0.4% in September 2012 and 0.0% in October 2012. The unemployment rate was 7.7% in November 2012.