May Trade Balance Report

By Jul 11, 2008, 2:29 PM Author's Blog  

The Commerce Department reported on Friday the U.S. trade deficit in goods and services declined to $59.8 billion in May from $60.5 billion in April. Economists expected a trading gap deficit of $62.5 billion.

During the March-May period, exports averaged $154.8 billion, while imports averaged $213.7 billion, thus the $59.8 billion in average trade deficit.

May exports increased $1.4 billion and were up $23.9 billion — almost 18% higher on a year-over-year basis. The gain in exports for the month of May was primarily driven by fuel oil, chemical fertilizers, and other petroleum products.

May imports were $0.7 billion more than April imports of $216.7 billion. This is a relatively small rise when compared with the large spike we experienced in April. Imports were up $24.2 billion — 12.5% higher versus a year ago. With oil trading now above $135 p/bl, the cost of imports is likely to rise further in coming months.

The weaker dollar and a high demand overseas continues to boost U.S. exports. The “export” factor is adding significantly to real GDP growth. Meanwhile, imbalance in global trade remains a problem, as the deficit with China showed. It stood at $21.0 billion in May – by far the largest deficit with any single country, followed by OPEC $17.9 bln and the European Union $7.9 bln.

Today’s report on declining trade deficit numbers, further reinforces the idea — that tax rebates are not the main reason for keeping our economy out of recession. The fact is – the trade sector is largely contributing to economic growth, not consumption.

  • SHARE:
  • Share on StockTwits

LEAVE A COMMENT

SPY207.97  chart+1.64  chart +0.79%
GOOG698.21  chart+5.20  chart +0.75%
AAPL93.64  chart-0.10  chart -0.11%
TSLA241.80  chart+1.04  chart +0.43%
TWTR14.40  chart-0.22  chart -1.50%
BBRY7.06  chart+0.00  chart +0.00%
NFLX93.11  chart+3.08  chart +3.42%
FB118.57  chart+0.99  chart +0.84%

Nikkei16147.38  chart-518.67  chart -3.11%
UK6187.47  chart-54.42  chart -0.87%
France4375.06  chart-67.69  chart -1.52%
Germany9946.36  chart-176.91  chart -1.75%

EUR / USD1.1583  chart+0.0056  chart +0.49%
GBP / USD1.4675  chart+0.0010  chart +0.07%
CAD / USD0.7960  chart-0.0017  chart -0.21%
AUD / USD0.7567  chart-0.0095  chart -1.24%

Gold Fut1102.80  chart-5.30  chart -0.48%
Oil Fut46.84  chart-0.25  chart -0.53%