12 July 2007, 17:32  US May trade deficit up 2.3 pct to 60.0 bln usd as expected

The US trade deficit rose 2.3 pct in May to 60.0 bln usd as Americans imported more and more expensive oil and other commodities. Economists were looking for a 60.0 bln usd deficit, expecting imports to recover from their April slide. The April trade deficit had fallen to 58.7 bln usd revised, almost entirely on lower imports. The Commerce Department said imports rose 2.3 pct or 4.2 bln usd. More than half of the dollar increase was in energy and metals products. Petroleum imports rose 6 pct by volume and the average price per barrel of crude, at 59.36 usd, was the highest since 62.40 usd last September. Another 1 bln usd of the higher imports was in capital goods, raising them to a record 36.7 bln usd. The other big import increases were in consumer goods, particularly apparel and pharmaceuticals. Auto imports fell 508 mln usd. Exports in May were up 2.2 pct or 2.9 bln usd. Most of that came from higher capital goods exports, including aircraft, electronics and machinery. Civilian aircraft exports were up 839 mln usd. The US trade deficit with China rose 3.3 pct in May to 20.0 bln usd, but the deficit with Japan fell to 5.9 bln usd, its lowest level in three years. Year-over-year, the US trade deficit is down 5.7 bln usd with exports up 11.1 pct and imports up 4.1 pct.

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