--US April trade deficit narrows -2.7% to $32.2 billion
--US April goods/services imports -2.2%; exports -2.0%
--US March trade deficit revised to $33.1 bln from $31.2 bln
--US April goods trade gap $37.8 bln; March revised to $38.3 bln
--US April oil imports +5.3%; non-oil imports -3.4%
--US April oil imports average record 10.3 mln barrels per day
--US April civilian aircraft exports -19.9%;
--Ex-civilian aircraft, US April goods exports -2.1%.
--US April trade gap with Japan $6.4 bln; March $6.2 bln
--US April trade gap with China $6.3 bln; March $5.7 bln
--US April deficit with euro area $5.1 bln; March deficit $4.4 bln
--US April deficit with OPEC nations $3.7 bln; March $3.2 bln
--US April imported crude petroleum $21.65 per barrel
By Andrew Williams
Washington, June 21 (BridgeNews) - The U.S. trade deficit narrowed in April, shrinking 2.7% to $32.2 billion as weak demand for imports and exports, and continued culling of overbuilt inventories provided modest improvement compared with a revised $33.1 billion deficit in March. The April trade gap narrowed despite a 5.3% jump in the cost of oil imports, and a record average of barrels imported per day. In a reflection of weak global demand, both imports and exports of capital goods declined.
The April trade gap reflected a $37.8 billion shortfall in goods and a $5.7 billion surplus in services.
Exports fell 2.0% to $86.9 billion, the lowest since March 2000, as weaker demand capital goods and industrial materials, was partially offset by an increase in consumer goods, which hit a record $7.9 billion. Civilian aircraft exports fell 19.9% to $2.0 billion. Excluding sales of civilian aircraft, goods exports were 2.1% below the prior month.
Imports fell 2.2% to $119.1 billion as demand weakened for capital goods, as well as consumer goods. Imports of capital goods were at their lowest level since November 1999.
Analysts had expected a gap of $31.0 billion. In March, the trade gap widened 15.6% to $33.1 billion as record demand for foreign-made consumer products boosted imports.
The deficit, which hit a record high of $34.5 billion in September has been largely ignored by financial markets. Traders have said it reflected the strong performance of the U.S. economy and the attractiveness of its assets in recent years, and therefore the desire of foreign investors to deposit capital here.
Treasury Secretary Paul O'Neill, who has said he is not "alarmed" by the shortfall, has echoed that line.
Although analysts have expressed concern in recent years that the widening trade gap may cause foreign investors to flee U.S. assets, the value of the dollar has risen in recent months, despite the sharp drop in the stock market.
That suggests foreigners remain willing to invest in the U.S.
OIL
Oil again helped to erode the U.S. trade position. While the cost of imported crude averaged $21.65 per barrel, down from March's $22.76, the total value of crude imports rose 5.3% to $9.7 billion. Volume rose to a record average 10.3 million barrels per day from 9.4 million the prior month.
The trade gap with OPEC member countries widened to $3.7 billion in April from March's $3.2 billion.
WHAT WAS EXPECTED
The April's trade deficit was at the high end of analysts' expectations,which ranged from $29.0 billion to $32.2 billion. The median estimate for the goods deficit was $37.0 billion, in a range of $35.4 billion to $38.8 billion.
US TRADE GAP WITH SELECTED COUNTRIES
The U.S. goods trade position worsened with many key trading partners. The government does not seasonally adjust the bilateral trade statistics, so changes in the U.S. trade situation with individual countries do not fully reflect the overall data, which are seasonally adjusted.
The April report showed the politically sensitive U.S. trade gap with Japan widened to $6.4 billion from March's $6.2 billion.
The deficit with China widened to $6.3 from $5.7 billion a month earlier.
The trade gap with the 11 euro-area countries was $5.1 billion in April, widening from $4.4 billion one month earlier. For the year to date, the U.S.-euro area trade gap is $16.6 billion, widening from $14.3 billion the same period a year ago.