by Calculated Risk on 7/12/2011 08:30:00 AM
Tuesday, July 12, 2011
Trade Deficit increased sharply in May to $50.2 billion
The Department of Commerce reports:
[T]otal May exports of $174.9 billion and imports of $225.1 billion resulted in a goods and services deficit of $50.2 billion, up from $43.6 billion in April, revised. May exports were $1.0 billion less than April exports of $175.8 billion. May imports were $5.6 billion more than April imports of $219.4 billion.The first graph shows the monthly U.S. exports and imports in dollars through May 2011.
![U.S. Trade Exports Imports](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFYOtpiSBhaMCd-gmsupPBrHoJoL6fMsObQfH7IlgSdGM6Q4p7HmlY5bt5wMdHZ7NciyPOI_MRmwFdTqoKCM7xEWRTI6GghxsNPxzs6dMxVQBvbftL1RVhjuwYKdOCuGqfBEzm9Q/s320/TradeBalanceMay2011.jpg)
Exports decreased in May and imports increased (seasonally adjusted). Exports are well above the pre-recession peak and up 15% compared to May 2010; imports are almost back to the pre-recession peak, and up about 16% compared to May 2010.
The second graph shows the U.S. trade deficit, with and without petroleum, through May.
![U.S. Trade Deficit](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCMKA8UTKopjN_E-PUbhMxVu2576y7kyHKj-KXan8g7BG707sZd_PKjTquhxgPGCJ76FwCQILT2nTa5iTTDxdKuoD38NiNW6Vpgm2W0PiXJblQdA07NgGU28DW4nw20mZ4IV3Jcw/s320/TradeDeficitMay2011.jpg)
The petroleum deficit increased in May as both prices and the quantity of oil imported increased. Oil averaged $108.70 per barrel in May, up from $103.18 per barrel in April, and up from $76.95 in May 2010. There is a bit of a lag with prices, and import prices will probably be a little lower in June.
The trade deficit with China increased to $24.96 billion, so once again the deficit is mostly oil and China.