U.S. Trade Deficit Stable M/M But Sharply Deeper Since Last Year

The latest and revised U.S. foreign trade figures paint the same picture as earlier. An April deficit of $40.3B, stable since February, followed deterioration from its shallowest last May. The latest figure roughly matched Consensus expectations for a deficit of $41.0B.

The deficit's deterioration since last year reflects the U.S. economic recovery. Non-oil imports slipped 0.7% in April but it was the first monthly decline in nearly one year. The 21.1% y/y gain during the last twelve months reflects a two-thirds increase in imports of automotive vehicles & parts. Real nonauto consumer goods imports rose 4.0% y/y while capital goods imports jumped by nearly one-quarter with the strength in business investment. Finally, services imports have risen 6.8% y/y. U.S. travels abroad fell 0.7% y/y while passenger fares surged 15.0% y/y. "Other" transportation services imports jumped 7.7% y/y. Imports of petroleum products slipped marginally in April but were up by two-thirds from last year with the surge in prices.

Nominal exports slipped 0.7% during April following their slightly-revised 3.8% jump during March. Year-to-year, however, exports have risen a strong 19.9% with the dollar's lower value. The monthly dip reflected a 5.3% drop in nonauto consumer goods exports (+10.3% y/y) and a 7.6% drop in food & beverages (+4.2% y/y). These were offset by a 1.9% increase (50.3% y/y) in industrial supplies exports and a 1.4% gain (+57.2% y/y) in autos. In addition, exports of services rose 0.2% (8.0% y/y) as passenger fares were strong.

By country, the trade deficit with mainland China deepened to $19.3B, its deepest since December. Trade with China surged as exports jumped by one-quarter y/y and imports rose by a lesser 18.2%. The trade deficit with Japan eased to $4.8B but imports rose by roughly one-third y/y with the U.S. economic recovery and exports rose 17.2% y/y. With the European Union the trade deficit eased to $5.7B as exports rose 7.0% y/y and imports rose about the same.

The international trade data can be found in Haver's USECON database. Detailed figures are available in the USINT database.

Foreign Trade	April	March	February	Y/Y	2009	2008	2007
U.S. Trade Deficit	$40.3B	$40.0B	$40.1B	$28.4B(4/09)	$378.6B	$695.9B	$701.4B
Exports - Goods & Services (m/m)	-0.7%	3.8%	-0.1%	19.9%	-14.6%	11.5%	13.2%
Imports - Goods & Services	-0.4	2.9	2.8	23.9	-23.3	8.0	6.0
Petroleum	-0.0	6.0	7.4	67.5	-44.0	37.0	9.4
Nonpetroleum Goods	-0.7	3.2	1.9	21.1	-20.9	1.5	4.8