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...
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The details:
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:
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Exports
- 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
- 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.