FXStreet (Córdoba) - According to Jay Bryson and Tim Quinlan, economists at Wells Fargo, weak export growth in the US is likely to continue. They noted that imports of the iPhone contribute to the widening in the trade deficit in August.
Key Quotes:
“The $3.7 billion plunge in exports of goods and services in combination with the $2.8 billion rise in imports produced the sharp increase in the trade deficit.”
“There was a notable $2.1 billion jump in “cell phones and other household goods,” which likely reflects imports of the Apple iPhone 6s. This one-off effect contributed to the $4.0 billion rise in imports of consumer goods. The $400 million increase in imports of telecommunication equipment helped to pull imports of capital goods up by $1.1 billion.”
“This surge in total imports in August would have been even higher had not the value of imported petroleum products plunged by $2.0 billion.”
“Unlike imports, which were pulled higher in August by some one-off effects, the underlying forces that are leading to weakness in exports are not likely to be reversed anytime soon.”
“The reversal in the real trade deficit that occurred in the first two months of the third quarter means that net exports likely will be a significant drag on overall GDP growth in Q3 2015.”
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