WASHINGTON – The nation’s imports of goods and services exceeded exports in April by $58.5 billion, narrowing by $3.9 billion or 6.2 percent from March’s revised $62.4 billion deficit, according to a report today by the U.S. Census Bureau and Bureau of Economic Analysis. The trade deficit had widened by 10.4 percent in March.
The median forecast of 74 economists surveyed by Bloomberg News was that the gap would shrink to $63.5 billion in April from the $63.9 billion originally reported for March.
“The trade imbalance seems to be permanently on the mend,” continuing its retreat from August’s record $68.9 billion gap, said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, whose forecast of a $60.2 billion gap was the survey’s lowest:
Analysts credited a cheaper dollar and an expanding global economy that helped boost U.S. exports of goods and services even as imports declined
Total U.S. exports increased by $0.2 billion in April to a record $129.5 billion in April from $129.2 billion in March. Exports of goods were steady at $91.1 billion, as decreases in capital goods; other goods; and auto vehicles and parts were offset by increases in foods, feeds and beverages; industrial supplies and materials; and consumer goods. Services exports rose $200 million to $38.4 billion, led by travel, transportation and freight charges.
Total imports declined $3.6 billion to $188.0 billion in April from $191.6 billion in March. Goods imports shrank $3.6 billion to $158.2 billion, led by declines in consumer goods; automotive vehicles and parts; capital goods; foods, feeds and beverages; and other goods. Services imports were “virtually unchanged” at $29.8 billion.
Compared with April 2006, the trade deficit shrank by $3.8 billion or 6.1 percent.
“The rest of the world is growing,” Diane Swonk, chief economist at Mesirow Financial Inc. in Chicago told Bloomberg News. “With the tailwind of a weak dollar, that’s good news to keep our factories humming. This will probably easily throw GDP growth over the 3 percent range for the second quarter.”
Additional information, including the 49-page U.S. International Trade in Goods and Services news release, is available at www.bea.gov.
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