by Calculated Risk on 7/11/2012 08:30:00 AM
Wednesday, July 11, 2012
Trade Deficit declines in May to $48.7 Billion
The Department of Commerce reported:
[T]otal May exports of $183.1 billion and imports of $231.8 billion resulted in a goods and services deficit of $48.7 billion, down from $50.6 billion in April, revised. May exports were $0.4 billion more than April exports of $182.7 billion. May imports were $1.6 billion less than April imports of $233.3 billion.The trade deficit was at the consensus forecast of $48.7 billion.
The first graph shows the monthly U.S. exports and imports in dollars through May 2012.
![U.S. Trade Exports Imports](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizyq2U1ya6X1Ah2Nl4hSF6Ja-SiOVTjEh8IJDB4ByLK-W8ZLjM_HDQkCLj72x_SMq8r3TmkpKG_1UXrsTwCDKrpRWBwhEJOWUOweyCmcBZclfx4hU2LRM9-tUO0QJUrQ3Ou4LK/s320/TradeMay2012.jpg)
Exports increased in May and imports decreased. Exports are 10% above the pre-recession peak and up 4% compared to May 2011; imports are at the pre-recession peak, and up about 4% compared to May 2011.
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/AVvXsEgufWNj1sPDC07unEbhXCGvhjZmalADqFYnlm38pDxC9nassQ_lTFWgRjKSQA1fmk7Z2eqnV3nRlXCtqAqgZLCIT5n68QAOGSymQNNiKxcss-TKbDdK0tDm7nZY9Vq1SRQvFvYR/s320/TradeDeficitMay2012.jpg)
Oil averaged $107.91 per barrel in May, down from $109.94 per barrel in April. This will decline further in June. The trade deficit with China increased to $26 billion in May, up from $24.9 billion in May 2011. Once again most of the trade deficit is due to oil and China.
Exports to the euro area were $17 billion in May, up from $16.4 billion in May 2011; so the euro area recession didn't lead to less US exports to the euro area in May.