What Q2 GDP Rebound? Trade Deficit Soars To 2 Year High, To Slam Lofty Q2 GDP Expectations
The US trade balance collapsed in April dashing hopes for the exuberant hockey-stock rebound in Q2 GDP. This is the biggest trade deficit since April 2012 and the biggest miss from expectations since October 2008. The last 2 months have seen the biggest slide in the deficit in a year as trade gaps with the European Union and South Korea reach records and the deficit with China surged by $7billion to $28 billion. Impots of capital goods, autos, and consumer goods all set records. And Q2 GDP downgrades in 3...2...1...
The U.S. monthly international trade deficit increased in April 2014 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit increased from $44.2 billion in March (revised) to $47.2 billion in April as exports decreased and imports increased. The previously published March deficit was $40.4 billion. The goods deficit increased $3.3 billion from March to $65.8 billion in April; the services surplus increased $0.2 billion from March to $18.6 billion in April.
A long-term chart of the trade deficit showing the dramatic, GDP -reducing, deterioration in recent months:
- Exports of goods and services decreased $0.3 billion in April to $193.3 billion, reflecting a decrease in exports of goods. Exports of services increased.
- The decrease in exports of goods mainly reflected decreases in capital goods and in foods, feeds, and beverages.
- The increase in exports of services mainly reflected increases in financial services and in transport, which includes passenger fares.
- Imports of goods and services increased $2.7 billion in April to $240.6 billion, mainly reflecting an increase in imports of goods. Imports of services also increased.
- The increase in imports of goods mainly reflected increases in consumer goods, in automotive vehicles, parts, and engines, and in capital goods.
- The increase in imports of services reflected increases of less than $0.1 billion in several categories of services.
Goods by geographic area (seasonally adjusted, Census basis)
- The goods deficit with the European Union increased from $11.2 billion in March to $13.1 billion in April. Exports increased $0.3 billion to $23.2 billion, and imports increased $2.1 billion to $36.3 billion.
- The goods deficit with China increased from $26.3 billion in March to $28.0 billion in April. Exports decreased $0.5 billion to $9.7 billion, and imports increased $1.2 billion to $37.7 billion.
- The goods deficit with India increased from $2.0 billion in March to $2.6 billion in April. Exports decreased $0.3 billion to $1.4 billion, and imports increased $0.3 billion to $4.0 billion.
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