U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES: APRIL 1998 This release contains sensitive economic data not to be released before 8:30 a.m. Thursday, June 18, 1998 CB-98-101 Press Copy FT-900 (98-04) For information on goods contact: Bureau of the Census: Haydn R. Mearkle (301) 457-2246 Richard M. Preuss (301) 457-2311 For information on services contact: Bureau of Economic Analysis: Technical: Christopher Bach (202) 606-9545 Media: Larry Moran (202) 606-2649 U.S. INTERNATIONAL TRADE IN GOODS AND SERVICES April 1998 Goods And Services The Bureau of the Census and the Bureau of Economic Analysis, through the Department of Commerce, announced today that total April exports of $77.1 billion and imports of $91.6 billion resulted in a goods and services deficit of $14.5 billion, $1.2 billion more than the $13.2 billion in March, revised. April exports were $2.0 billion less than March exports of $79.1 billion. April imports were $0.8 billion less than March imports of $92.4 billion. In April, the goods deficit increased $1.0 billion from March to $21.5 billion, and the services surplus decreased $0.3 billion to $7.0 billion. Exports of goods decreased to $55.3 billion from $57.2 billion, and imports of goods decreased to $76.8 billion from $77.7 billion. Exports of services decreased to $21.8 billion from $21.9 billion, and imports of services increased to $14.8 billion from $14.6 billion. Goods The March to April change in exports of goods reflected decreases in capital goods of $1.1 billion (primarily civilian aircraft); other goods ($0.5 billion); industrial supplies and materials ($0.4 billion); foods, feeds, and beverages ($0.2 billion); and automotive vehicles, parts, and engines ($0.1 billion). An increase occurred in consumer goods of $0.1 billion. The March to April change in imports of goods reflected decreases in automotive vehicles, parts, and engines of $0.8 billion (primarily automobiles); capital goods ($0.8 billion); and foods, feeds and beverages ($0.1 billion). Increases occurred in industrial supplies and materials ($0.7 billion); other goods ($0.2 billion); and consumer goods ($0.1 billion). Note: Total goods are reported on a balance of payments basis; commodity and country detail for goods are on a Census basis. Definitions are explained in the notes starting on page 26 of this release. Services Services exports decreased $0.1 billion from March to April. Transfers under U.S. military sales contracts decreased $0.7 billion, following an increase of like magnitude in March due to large, one-time transactions. Largely offsetting this decrease, travel increased $0.5 billion and passenger fares increased $0.1 billion. Services imports increased $0.2 billion from March to April, mostly reflecting an increase in travel of $0.1 billion. Changes in other categories of services imports were small. Goods and Services Moving Average For the three months ending in April, exports of goods and services averaged $78.0 billion, while imports of goods and services averaged $91.1 billion, resulting in an average trade deficit of $13.1 billion. For the three months ending in March, the average trade deficit was $11.6 billion, reflecting average exports of $78.8 billion and average imports of $90.4 billion. Selected Not Seasonally Adjusted Goods Details The April figures showed surpluses, in billions of dollars, with Australia $0.5 (for March $0.6), Brazil $0.4 ($0.5), Hong Kong $0.3 ($0.4), Argentina $0.3 ($0.3)and Egypt $0.2 ($0.2). Deficits were recorded, in billions of dollars, with Japan -$5.4 (-$5.8), China -$4.3 (-$3.8), Western Europe -$3.2 (-$1.6) Mexico -$1.3 ($-1.4) Canada -$1.2 (-$0.9), OPEC -$1.2 (-$0.5) Taiwan -$1.1 (-$1.1), Korea -$0.5 (-$0.7), and Singapore -$0.4 (-$0.3). Advanced technology products (ATP) exports were $14.4 billion in April and imports were $12.3 billion, resulting in a surplus of $2.1 billion. April exports were $2.6 billion less than the $17.0 billion in March, while imports were $1.6 billion less than the $13.9 billion in March. Revisions Carry-over in April was $0.6 billion (1.1 percent) for exports and $0.8 billion (1.1 percent) for imports. For March, revised export carry-over was $0.1 billion (0.1 percent), revised down from $0.6 billion (1.0 percent). For March, revised import carry-over was $0.1 billion (0.1 percent), revised down from $0.9 billion (1.1 percent). *** NOTICE *** *** NOTICE *** *** NOTICE *** *** NOTICE *** *** NOTICE *** With this release, the Bureau of the Census and the Bureau of Economic Analysis are publishing revised U.S. goods and services trade statistics for 1996, 1997, and the first quarter of 1998. Also released today was the "U.S. International Trade in Goods and Services Annual Revisions for 1997", which contains revised goods and services data for 1992-97. More detailed information will be provided in the July issue of the Survey of Current Business. Goods The 1997 unadjusted Census basis goods data were revised to eliminate "carry over" (that portion of the monthly statistics that arrive too late for inclusion in the transaction month) and to include errata (corrections to the published monthly data). Once these corrections were completed, factors for seasonal adjustments, working day adjustments, and constant dollars were recomputed, and the seasonally adjusted and constant dollars series were revised for 1995, 1996, 1997, and the first quarter of 1998. In addition, as part of the annual revision, all series were reviewed for their suitability for seasonal and trading-day adjustment. This year 6 additional series were adjusted. The most significant of these was the introduction of seasonal adjustment for exports of civilian aircraft. This change results in a more accurate picture of seasonally adjusted total exports, particularly when the data are aggregated on a quarterly basis. The BEA will carry this adjustment through the International Transactions Accounts and the National Income and Product Accounts, where it will improve the reliability of the quarterly Gross Domestic Product estimates. The monthly pattern of exports of civilian aircraft exhibits high variability and was not previously adjusted because it did not meet all of the usual criteria for seasonal adjustment of individual series. This year, however, after considering the contribution of adjusting civilian aircraft to improving the accuracy of seasonally adjusted total exports, a decision was made to adjust this series. At this time next year, as part of the regular review of all trade series, the agencies will assess the effects of seasonally adjusting exports of civilian aircraft on the monthly and quarterly trade statistics and on the yearly revisions to the statistics to determine whether to continue the practice. Services Several major improvements and reclassifications are introduced to the services estimates. "Other" private services and royalties and license fees incorporate newly available information from BEA's 1994 Benchmark Survey of U.S. Direct Investment Abroad; for the period after 1994, the estimates are revised by extrapolating forward the 1994 universe data and by incorporating new or adjusted data from BEA's quarterly sample surveys for 1995-97. In addition, to consolidate all nonfinancial leasing transactions into one account, the leasing of transportation equipment, which was previously included with "other" transportation, has been reclassified to "other" private services. Similarly, computer software royalties and license fees are reclassified from the "other" private services accounts to the royalties and license fees accounts. For the "other" transportation accounts, revised estimates of freight charges for land transportation between the United States and Canada are introduced. In addition to these improvements, the services estimates are revised to reflect newly available and updated source data. Seasonally Adjusted Exhibit 1 International Trade in Goods and Services 4 Exhibit 2 Goods and Services Centered Three - Month Moving Averages 5 Exhibit 3 U.S. Services by Major Category--Exports 6 Exhibit 4 U.S. Services by Major Category--Imports 7 Exhibit 5 U.S. Trade in Goods 8 Exhibit 6 Exports and Imports of Goods by Principal End-Use Category 9 Exhibit 7 Exports of Goods by End-Use Category and Commodity 10 Exhibit 8 Imports of Goods by End-Use Category and Commodity 12 Exhibit 9 Petroleum and Non-Petroleum End-Use Category Totals 14 Exhibit 10 Exports and Imports of Goods by Principal End-Use Category (Constant Dollars) 15 Exhibit 11 Exports, Imports, and Balance of Goods, Petroleum and Non-Petroleum End-Use Commodity Category Totals (Constant Dollars) 16 Not Seasonally Adjusted Exhibit 12 U.S. Trade in Goods 17 Exhibit 13 Exports and Imports of Goods by Principal End-Use Category 18 Exhibit 14 Exports, Imports, and Balance of Goods by Selected Countries and Areas 19 Exhibit 15 Exports and Imports of Goods by Principal SITC Commodity Groupings 21 Exhibit 16 Exports, Imports, and Balance of Advanced Technology Products 23 Exhibit 17 Imports of Energy - Related Petroleum Products, Including Crude Petroleum 24 Exhibit 18 Exports and Imports of Motor Vehicles and Parts By Selected Countries 25 Information on Goods and Services 26 SOURCE: Report FT900 (CB-98-101), Bureau of the Census, Foreign Trade Division, APRIL 1998. For more information, contact Haydn R. Mearkle (301-457-2246) or Richard M. Preuss (301-457-2311), Foreign Trade Division.