US Trade Deficit Narrows in April


The US trade deficit narrowed to USD 50.8 billion in April 2019 from a revised USD 51.9 billion in the previous month and compared to market expectations of USD 50.7 billion. The politically sensitive goods trade deficit with China increased 29.7 percent to USD 26.9 billion.

Exports from the US fell USD 4.6 billion from the previous month to USD 206.8 billion in April. Goods exports decreased USD 4.4 billion to USD 136.9 billion, dragged by sales of capital goods (down USD 2.7 billion), in particular civilian aircraft after Boeing was grounded indefinitely and suspended deliveries of its 737 MAX jet following two deadly crashes. In addition, exports of automotive vehicles, parts, and engines were down USD 0.8 billion, led by passenger cars and automotive parts; while sales of consumer goods declined USD 0.6 billion on pharmaceutical preparations. Exports of services, including travel and maintenance and repair services decreased USD 0.2 billion to USD 69.9 billion in April.

On a non seasonally adjusted basis, goods exports dropped to China (-24.3 percent), Japan (-11.4 percent), the EU (-10.8 percent), Canada (-4.6 percent), Brazil (-8.9 percent), and OPEC (-23.7 percent); while sales to Mexico rose 1.8 percent.

Imports to the US plunged USD 5.7 billion to USD 257.6 billion. Goods imports slumped USD 5.4 billion to USD 208.7 billion, on the back of lower purchases of capital goods except automotive (down USD 1.7 billion), in particular semiconductors and civilian aircraft engines; consumer goods (down USD 1.1 billion), such as gem diamonds; automotive vehicles, parts, and engines (down USD 1.0 billion) due to passenger cars; and industrial supplies and materials (down USD 0.6 billion). Imports of services, including transport, declined USD 0.3 billion to USD 49.0 billion in April.

On a non seasonally adjusted basis, goods imports fell from Canada (-3.5 percent), Mexico (-3.0 percent), Japan (-0.8 percent), and Brazil (-2.4 percent); but rose from China (11.6 percent), the EU (0.5 percent), and OPEC (2.4 percent).

The politically sensitive goods trade deficit with China increased 29.7 percent to USD 26.9 billion in April from USD 20.7 billion. Also, the trade deficit widened with the EU (USD 17.7 billion from USD 14.2 billion), Japan (USD 7.2 billion from USD 6.6 billion) and Canada (USD 1.6 billion from a surplus of USD 1.3 billion). Meanwhile, the trade deficit with Mexico shrank to USD 8.2 billion from USD 9.5 billion in March.

US Trade Deficit Narrows in April


US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com
6/6/2019 12:57:39 PM