The US trade deficit increased from $40.7 bn to $41.8bn, slightly lower than expected. Impoorts fell a mere 0.1% (despite a record amount of imported auto parts) but exports fell 0.8% (driven by a decline in Aircraft sales), nudging GDP expectations lower. The trade deficit with China rose notably and exports to Europe dropped.
- *MAY IMPORTS FALL 0.1% TO $230.5 BLN ON OIL, CAPITAL GOODS
- *U.S. MAY EXPORTS DECLINE 0.8% TO $188.6 BLN ON AIRCRAFT
- *U.S. IMPORTED A RECORD $29.5 BLN IN AUTOS, PARTS IN MAY
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Exports
- Exports of goods and services decreased $1.5 billion, or 0.8 percent, in May to $188.6 billion.
- Exports of goods decreased $1.6 billion and exports of services increased $0.1 billion.
- The decrease in exports of goods mainly reflected a decrease in capital goods ($2.4 billion). An increase in industrial supplies and materials ($0.8 billion) was partly offsetting.
- The increase in exports of services mainly reflected an increase in other business services ($0.1 billion), which includes research and development services; professional and management services; and technical, trade-related and other services.
Imports
- Imports of goods and services decreased $0.3 billion, or 0.1 percent, in May to $230.5 billion.
- Imports of goods decreased $0.4 billion and imports of services increased $0.1 billion.
- The decrease in imports of goods mainly reflected decreases in capital goods ($0.8 billion) and in industrial supplies and materials ($0.6 billion). An increase in automotive vehicles, parts, and engines ($0.8 billion) was partly offsetting.
- The increase in imports of services mainly reflected an increase in transport ($0.1 billion), which includes freight and port services and passenger fares.
Goods by geographic area (seasonally adjusted, Census basis)
- The goods deficit with China increased from $27.5 billion in April to $30.6 billion in May. Exports decreased $0.7 billion to $9.6 billion and imports increased $2.4 billion to $40.2 billion.
- The goods deficit with the European Union increased from $11.9 billion in April to $13.4 billion in May. Exports decreased $1.0 billion to $22.6 billion and imports increased $0.4 billion to $36.0 billion.
- The goods surplus with South and Central America increased from $3.0 billion in April to $4.2 billion in May. Exports increased $0.8 billion to $13.7 billion and imports decreased $0.4 billion to $9.5 billion.
Charts: Bloomberg
