U.S. Trade Deficit Widens More Than Expected Amid Steep Drop In Exports
02 Juli 2020 - 11:47AM
RTTF2
With the value of exports falling by much more than the value of
imports, the Commerce Department released a report on Thursday
showing the U.S. trade deficit widened more than expected in the
month of May.
The Commerce Department said the trade deficit widened to $54.6
billion in May from a revised $49.8 billion in April.
Economists had expected the trade deficit to widen to $53.0
billion from the $49.4 billion originally reported for the previous
month.
The wider than expected trade deficit came as the value of
exports plunged by 4.4 percent to $144.5 billion in May from $151.1
billion in April.
Exports of industrial supplies and materials led the way lower,
tumbling by $3.9 billion, while export of services also slumped by
$1.1 billion.
Meanwhile, the report showed a more modest decrease in the value
of imports, which slid by 0.9 percent to $199.1 billion in May from
$200.9 billion in April.
A steep drop in imports of automotive vehicles, parts and
engines was partly offset by increases in imports of industrial
supplies and materials and consumer goods.
"With the recovery in production lagging consumption by a few
weeks, both exports and imports will begin rebounding soon,"
Michael Pearce, Senior U.S. Economist at Capital Economics,
predicted.
The report also said the goods deficit widened to $76.1 billion
in May from $71.8 billion in April, while the services surplus fell
to $21.5 billion from $22.1 billion.
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