U.S. international transactions in 2007

Survey of Current Business, April, 2008 by Christopher L. Bach

Capital goods increased $32.1 billion, or 8 percent, following an increase of $51.6 billion, or 14 percent. Capital goods excluding civilian aircraft and aircraft parts slowed sharply; they increased $20.1 billion, or 6 percent, down from an increase of $37.2 billion, or 12 percent. Computers, peripherals, and parts, semiconductors, and machine tools and metalworking machinery all declined, following sizable increases in 2006. The increase in electric generating machinery slowed. The increase in telecommunications equipment was the same size as in 2006. In contrast, industrial engines, "other" industrial, agricultural, and service industry machinery, and oil drilling, mining, and construction machinery all increased by larger amounts than in 2006, providing some offset to the declines and the slowdown. Civilian aircraft, engines, and parts increased $12.0 billion, or 16 percent, down somewhat from an increase of $14.4 billion, or 24 percent, but this category remained at the high level characteristic of 2005 and 2006. In 2007, exports of complete aircraft were largely to India, China, and the United Kingdom, and exports of parts and engines were largely to France and Brazil (table J).

Foods, feeds, and beverages increased $18.3 billion, or 28 percent, following an increase of $7.0 billion, or 12 percent. The increase in 2007 was more than double the previous record increase of $8.5 billion in 1988. Prices of major food commodities were sharply higher in 2007, rising 20 percent after a 4 percent increase in 2006. Wheat increased $4.2 billion, following a decrease of $0.2 billion in 2006; prices increased 42 percent, following a 16 percent increase in 2006. Soybeans increased $3.2 billion, up from an increase of $0.7 billion; prices increased 35 percent, following a 2 percent decline in 2006. Exports of soybeans to China accounted for half of the gain, partly as a result of a poor harvest in China. Corn increased $3.0 billion, up from an increase of $2.4 billion; prices increased 36 percent, following a 20 percent increase in 2006, partly reflecting increased demand by ethanol producers. Exports of corn increased strongly to Japan and Mexico.

Consumer goods increased $16.4 billion, or 13 percent, following an increase of $13.9 billion, or 12 percent. Nondurable goods increased $5.0 billion, up slightly from an increase of $4.9 billion; pharmaceutical goods accounted for over 80 percent of the increase in 2007. Durable goods increased $9.1 billion, up from an increase of $7.9 billion; toys, household goods, artwork and other collectibles, and records and tapes were all higher in 2007.

Automotive vehicles, parts, and engines increased $13.8 billion, or 13 percent, following an increase of $8.6 billion, or 9 percent. Passenger cars exports increased $9.7 billion, up from an increase of $3.5 billion, largely to Europe, particularly Germany, but also to Canada. Engines and parts increased $2.2 billion, down from an increase of $3.5 billion.

Imports. Goods imports increased $103.2 billion, or 6 percent, to $1,964.6 billion, in 2007, following an increase of $179.6 billion, or 11 percent, in 2006 (table D). Real imports increased 2 percent, and import prices increased 4 percent. Increases in the values of both nonpetroleum and petroleum imports were substantially smaller than in any year in 2004-2006 (chart 4). Among nonpetroleum imports, increases were significantly smaller for nonpetroleum industrial supplies and materials, autos, and capital goods (chart 6). By area, imports from Asia and Pacific increased $34.3 billion; from Europe, $27.5 billion; from South and Central America, $13.5 billion; and from Canada, $10.6 billion.