Friday, July 06, 2018

Trade Deficit decreased to $43.1 Billion in May

by Bill McBride on 7/06/2018 12:13:00 PM

From the Department of Commerce reported:

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $43.1 billion in May, down $3.0 billion from $46.1 billion in April, revised. … May exports were $215.3 billion, $4.1 billion more than April exports. May imports were $258.4 billion, $1.1 billion more than April imports.
U.S. Trade Exports Imports Click on graph for larger image.

Both exports and imports increased in May.

Exports are 30% above the pre-recession peak and up 12% compared to May 2017; imports are 11% above the pre-recession peak, and up 8% compared to May 2017.

In general, trade has been picking up.

The second graph shows the U.S. trade deficit, with and without petroleum.

U.S. Trade Deficit The blue line is the total deficit, and the black line is the petroleum deficit, and the red line is the trade deficit ex-petroleum products.

Oil imports averaged $58.37 in May, up from $54.00 in April, and up from $45.04 in May 2017.

The trade deficit with China increased to $33.2 billion in May, from $31.9 billion in May 2017.