DATA SNAP: US April Trade Gap Posts Surprise Drop As Oil Demand EbbsLast update: 6/9/2011 8:30:00 AM======================================================!
Apr International Trade !Consensus: !
Apr Mar ! $48.3 Bln !
Deficit: $43.68B $46.82Br ! !
Exports: $175.56B $173.39Br !Actual: !
Imports: $219.24B $220.22Br ! $43.68 Bln !
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By Tom Barkley and Jeff Bater
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The U.S. trade deficit unexpectedly contracted in April to its lowest level of the year, as exports hit a new high and purchases of oil fell off sharply amid a surge in prices. The U.S. deficit in international trade of goods and services declined 6.7% to $43.68 billion from a downwardly revised $46.82 billion the month before, the Commerce Department said Thursday. The March trade gap was originally reported as $48.18 billion. The April deficit was much smaller than Wall Street expectations, with economists surveyed by Dow Jones Newswires having predicted a $48.3 billion shortfall. A rebound in oil prices to levels not seen since the 2008 spike erased the modest reduction in the trade gap from late last year. But Nymex crude futures have settled back to around $100 a barrel after surging to nearly $115 a barrel in early May. Thursday's report showed that the average price of imported crude oil climbed $9.42 to $103.18 a barrel in April--its biggest jump since mid-2008. But in the face of soaring costs, the U.S. cut the amount of oil imported to 252.25 million barrels from 295.12 million. Decreasing demand brought down the overall tab for crude imports to $26.03 billion, from $27.67 billion the month before. The U.S. paid $34.99 billion for all types of energy-related imports, down from $35.68 billion in March. Meanwhile, the trade deficit with China rebounded 19.4% to $21.60 billion in April. Exports to the U.S.'s No. 2 trading partner fell 16.3% to $7.97 billion, while imports increased 7.1% to $29.57 billion. Last month, the U.S. Treasury declined once again to label China a currency manipulator, but said the yuan needs to appreciate more rapidly than the 5% gain it has registered since being taken off the dollar peg a year ago. Many U.S. lawmakers have been pushing for the Obama administration to take a tougher stance, viewing China's weak currency as an unfair trade advantage. Trade acted as a bit of a drag on the U.S. economy in the first quarter of the year, after making a big contribution to growth in the final months of 2010. However, Thursday's report showed that the real, or inflation-adjusted deficit, which economists use to measure the impact of trade on GDP, narrowed to $44.23 billion in April from $49.66 billion the month before. U.S. exports continued to reach record levels, expanding 1.3% to $175.56 billion. Imports decreased, easing 0.4% to $219.24 billion. Breaking down imports outside of petroleum products, purchases of auto and related parts imports fell $2.82 billion. But food and feed imports climbed $360 million to a record $8.97 billion. U.S. sales abroad set new highs in petroleum and other types of industrial goods, as well as capital goods. Exports of industrial supplies grew by $2.04 billion, while capital goods exports like computers rose $1.24 billion. Regionally, U.S. registered an improvement in deficits with several of its major trading partners. The trade gap with Japan shrank 40.8% to $3.59 billion, with imports suffering a record monthly decline as the country continued to cope with the aftermath of a crippling earthquake and tsunami. The trade shortfall with Canada narrowed 4.0% to $2.54 billion, while the gap with Mexico decreased 11.6% to $5.45 billion. The deficit with the euro area decreased, to $6.97 billion from $8.15 billion. The Commerce Department report on trade can be found at census.gov. -By Tom Barkley and Jeff Bater, Dow Jones Newswires; 202-862-9275; tom.barkley@dowjones.com (END) Dow Jones NewswiresJune 09, 2011 08:30 ET (12:30 GMT) |
