U.S. imports finally back at record level
U.S. imports are running at a record level for the first time since the 2008 global economic crisis began, according to WorldCity analysis of the latest Census Bureau data.
U.S. exports, meanwhile, have been running at record levels all year. Imports lagged, only surpassing the 2008 total in September by a narrow 0.48 percent.
Through September, U.S. exports and imports totaled a record $2.74 trillion, a 17.02 percent increase over the 2010 total for the same time period and 4.32 percent over the 2008 total, the previous high-water mark.
Total exports through September of this year topped $1 trillion for the first time, an increase of 17.79 percent year-over-year and 10.65 percent greater than the previous record year of 2008.
Total imports reached $1.64 trillion through September, a smidgen above the 2008 total for the same time period of $1.63 trillion but 16.51 percent above the 2010 total for the same period.
The U.S. trade deficit increased but not the percentage of U.S. trade that is an export – similar but slightly different measurements.
The deficit – the value of exports minus imports – was $544.16 billion through the first nine months of the year, up from $477.23 billion in 2010 and $361.12 billion in 2009 but below the totals in 2005, 2006, 2007 and 2008.
The percentage of U.S. trade that is an export has stood steady at 40 cents on the dollar for three consecutive years after at least seven years in the range of 35 to 37 cents per dollar.
What this means is that while imports are rising faster in dollars terms, exports are rising faster in percentage terms.
For example, the U.S. trade deficit with China is at a record $217.38 billion through the first nine months of 2011. But, for the first time, the value of U.S. exports surpassed 20 cents for every dollar of trade. While not close to equilibrium, in 2005, it was below 15 cents on the dollar.
U.S. imports from No. 1 trade partner Canada, No. 2 China and No. 3 Mexico all increased more than $26 billion through September, accounting for more than one third of the total increase in imports.
NAFTA partners Canada and Mexico are large oil and gasoline sources while China is a primary supplier of a wide range of manufactured goods.
Oil, overwhelmingly the United States’ top import, and gasoline and other fuels, which jumped two positions to rank No. 3, accounted for one-third of the value of all U.S. imports through September, according to WorldCity analysis. Neither total eclipsed the 2008 record totals, however, when oil prices were last soaring.
The value of motor vehicles, the No. 2 U.S. import, not only fell well short of the record, but remains below the totals for 2004 through 2008.
While the value of oil increased 28.57 percent through September, compared to 16.51 percent for all imports, and refined petroleum increased 41.32 percent in value, motor vehicles rose a mere 5.18 percent. Increasingly, foreign manufacturers are building cars and light trucks in the Southern United States.
As recently as 2003, the value of motor vehicle imports was greater than that of oil.
Since 2002, the value of oil imported into the United States has risen almost 350 percent – more than $197 billion – almost four times the average for all imports. The value of gasoline and other fuels has increased 382 percent. The value of motor vehicle imports, meanwhile, has increased 5.9 percent in that same time period.