Trade deficit widens in August

In trend terms, the balance on goods and services was a deficit of $3,250m in August 2015, a decrease of $22m (1%) on the deficit in July 2015.

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Australia’s dollar dipped to US70.70¢ after the figures were released from around US70.80¢.

One of the causes was a surge in iPhone imports, which helped raise the trade deficit with China by 11% to $35 billion.

At the same time, imports increased by $2.8 billion in August, to $233 billion.

The declines are partly due to expectations of higher interest rates in the United States that have pushed the value of the dollar higher, reflecting the strength of America’s economy relative to its trading partners. It also casts doubt on the central bank’s view that non-energy production would trigger a recovery.

Exports dropped 3.6 percent, the biggest decline since January 2012 as exports of energy products tumbled.

Imports of goods increased $2.5 billion to $192.4 billion, largely due to a $2.1 billion increase in cell phones and other household goods.

Rural exports give them by merely a minimum of three % regarding the week.

The resulting trade deficit is up from a revised Can$817 million (US$624 million) deficit the previous month.

Imports were up for a fourth straight month, led by a rise in consumer goods imports (+2.6%) and metal and non-metallic mineral product (+6%) imports.

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“Moreover, with USA domestic demand still going strong and the Canadian dollar hovering around the 75 US cent mark – with more weakness likely in store – the rotation toward export growth will continue”. But the Obama administration will face a major challenge winning congressional approval for the Trans Pacific Partnership trade deal against opponents who argue that the agreement will expose American workers to more unfair foreign competition.

Trade deficit widens in August