US Trade Deficit Largest in 5 Months


The US trade deficit widened to USD 55.5 billion in May 2019 from a revised USD 51.2 billion in the previous month and compared to market expectations of USD 54.0 billion. That was the largest trade gap since December.

Exports from the US rose USD 4.2 billion from the previous month to USD 210.6 billion in May. Goods exports increased USD 3.9 billion to USD 140.8 billion, boosted by sales of capital goods (up USD 1.4 billion), in particular civilian aircraft and telecommunications equipment; consumer goods (up USD 0.8 billion), such as gem diamonds, jewelry and pharmaceutical preparations; soybeans (up USD 0.7 billion); and automotive vehicles, parts, and engines (up USD 0.6 billion). Exports of services, including travel, transport and maintenance and repair services increased USD 0.3 billion to USD 69.8 billion in May.

On a non seasonally adjusted basis, goods exports rose to all main partners: China (14.9 percent), Japan (16.2 percent), the EU (3.9 percent), Canada (3.0 percent), Brazil (8.8 percent), Mexico (1.1 percent) and OPEC (18.8 percent).

Imports to the US jumped USD 8.5 billion to USD 266.2 billion. Goods imports surged USD 8.3 billion to USD 217.0 billion on the back of purchases of automotive vehicles, parts, and engines (up USD 2.3 billion), in particular passenger cars; industrial supplies and materials (up USD 1.8 billion) due to crude oil; capital goods (up USD 1.6 billion) such as semiconductors, computers and computer accessories; and consumer goods (up USD 1.4 billion). Imports of services, including transport, were up USD 0.2 billion to USD 49.2 billion in May.

On a non seasonally adjusted basis, goods imports increased from China (12.8 percent), Canada (9.5 percent), Mexico (5.6 percent), the EU (1.2 percent), Brazil (22.3 percent), and OPEC (18.5 percent); but fell from Japan (-7.5 percent).

The politically sensitive goods trade deficit with China increased 12.2 percent to USD 30.2 billion in May from USD 26.9 billion in April. Also, the trade deficit widened with Canada (USD 3.3 billion from USD 1.5 billion) and Mexico (USD 9.6 billion from USD 8.2 billion); but narrowed with the EU (USD 17.2 billion from USD 17.7 billion) and Japan (USD 5.3 billion from USD 7.2 billion).

US Trade Deficit Largest in 5 Months


US Census Bureau | Joana Ferreira | joana.ferreira@tradingeconomics.com
7/3/2019 12:58:09 PM