MACRO ECONOMICS ASSIGNMENT

U.S ECONOMY

Submitted to:Samprit Chakrabarti

Submitted By:Abhishek Kumar Akriti Hamirwasia Prateek Sanu

EXPORT AND IMPORT

Today US is the worlds largest trading nation, simultaneously leading in imports and being among the top three exporting nations in the World. The U.S. is the world's fourth largest exporter, after the European Union, China and Germany. Two-thirds of U.S. exports are material goods. The largest sub-category (25%) is capital equipment, such as computer equipment, semiconducters and medical equipment. The second largest (20%) is industrial machinery and equipment, including plastics, chemicals and petroleum products. Only 5% of exports are automotive, while 6% is food and beverages. In fact, being such a large exporter, the U.S. exports are less than it imports. US are the world's second largest importer, after the European Union. More than 80% of U.S. imports are material goods. The largest sub-category (24%) is industrial machinery and equipment, including plastics, chemicals and petroleum products. The second largest subcategory (22%) is consumer goods. The US economy accounts for exports of $177.6 billion, and imports of $223.2 billion.
IMPORTS All imports Fuel imports Nonfuel imports All exports EXPORTS Agricultural exports Nonagricultural exports

Month 2010 September October November December 2011 January February March April May June July August September Sept. 2009 to 2010 Sept. 2010 to 2011 Footnotes (r) Revised

0.0 1.1 1.7 1.4

-1.5 4.3 4.8 5.6

0.3 0.3 0.8 0.3

0.6 0.8 1.5 0.7

2.4 2.8 7.6 2.0

0.4 0.6 0.8 0.6

1.5 1.7 3.0 2.6 0.1

(r)-0.6 (r)0.1 (r)-0.2

4.1 5.6 9.7 7.6 -0.6 -2.3

(r)0.1 (r)-1.4

0.7 0.5 0.8 0.8 0.3 0.0 0.2 0.2 0.2 2.5 5.5

1.3 1.3 1.5 0.8 0.4

(r)0.1 (r)-0.3

3.1 4.6 2.2 -0.5 -1.1

(r)0.8 (r)-4.0 (r)2.1

1.0 1.0 1.4 0.9 0.5 0.2

(r)0.2

0.5 0.4 4.9 9.5

0.3 0.3 4.3 8.0

0.3 3.6 13.4

0.1 8.1 43.4

1.6 12.2 22.9

U.S. import prices rose 0.3 percent in September, the U.S. Bureau of Labor Statistics reported. Over the past five months, import prices have shown little net change. Export prices increased 0.4 percent in September after 0.5 percent the previous month.

All Imports: Import prices are 0.3 percent in September after falling 0.2 percent the previous month. Overall, import prices have not changed by more than 0.6 percent in any month since rising 2.6 percent in April. Higher prices for both fuel and nonfuel imports contributed to the September advance. The price index for overall imports increased 13.4 percent over the past 12 months, led by a sharp rise in fuel prices. A 5.5 percent advance in nonfuel prices also contributed to the overall increase. All Exports: Export prices increased 0.4 percent in September after rising a similar 0.5 percent in August, resuming an upward trend following a 0.3 percent downturn in July. Higher prices for agricultural and nonagricultural exports each contributed to the advance. Prices for U.S. exports rose 9.5 percent over the past year. The trade deficit is when the value of imports is greater than the value of exports. Total August exports of $177.6 billion and imports of $223.2 billion which resulted in trade deficit of $45.6 billion, virtually unchanged from July, revised. In 2010, the total U.S. trade deficit was $497.9 billion. This shows that the economy is strengthening, since it is more than the $375 billion trade deficit in 2009. Still, it is much less than the record $759 billion trade deficit in 2006. The nations trade deficit held steady at $45.6 billion in August as both imports and exports decreased.

Goods and Services

Exports decreased to $177.6 billion in August from $177.7 billion in July (revised). Goods were $126.7 billion in August, down from $126.8 billion in July. Services were $50.9 billion in August, virtually unchanged from July. Imports decreased to $223.2 billion in August from $223.3 billion in July. Goods were $188.1 billion in August, virtually unchanged from July. Services were $35.1 billion in August, down from $35.3 billion in July. For goods, the deficit was $61.4 billion in August, up from $61.3 billion in July. For services, the surplus was $15.8 billion in August, up from $15.6 billion in July.