US trade gap widens in May
By Martin Crutsinger |
July 14, 2010, Wednesday
|
Print Edition
Print Edition
THE United States trade deficit widened in May to the highest level in 18 months as a rebounding economy pushed up demand for imports of foreign-made cars, computers and clothing.
The trade deficit increased 4.8 percent to US$42.3 billion, the largest imbalance since November 2008, US Commerce Department reported yesterday. American exports of goods and services rose 2.4 percent but this increase was outpaced by a 2.9 percent rise in imports.
American manufacturing has been a standout performer so far in this recovery, benefiting from a global economic recovery. But the concern is that export sales will be hurt by the European debt crisis, which has dampened growth prospects in Europe.
Through May, the US trade deficit is running at an annual rate of US$474.8 billion, up by 26.6 percent from US$374.9 billion deficit for all of 2009. That had been the lowest annual trade gap since 2001, another year when the country was in recession.
The rise in the May deficit came despite the fact that oil imports dropped by 9.1 percent to US$27.6 billion as both the price of oil and the volume of shipments declined slightly.
The 2.4 percent rise in exports in May from April pushed sales of American goods and services to US$152.3 billion, the highest level since September 2008.
While sales of soybeans, wheat and other farm products fell in May, demand for American-made autos, industrial machinery, medical equipment and commercial aircraft all increased.
Imports increased 2.9 percent to US$194.5 billion, the highest level since October 2008, reflecting big gains in imports of cars, computers, oil drilling equipment and industrial machinery.
The deficit with the European Union rose 7.5 percent to US$6.2 billion as imports from Europe rose by 3.2 percent, outpacing a 1.9 percent rise in US exports to that region.
The concern is that American exports could falter in coming months if a debt crisis in Europe pushes that region back into recession.
The trade deficit increased 4.8 percent to US$42.3 billion, the largest imbalance since November 2008, US Commerce Department reported yesterday. American exports of goods and services rose 2.4 percent but this increase was outpaced by a 2.9 percent rise in imports.
American manufacturing has been a standout performer so far in this recovery, benefiting from a global economic recovery. But the concern is that export sales will be hurt by the European debt crisis, which has dampened growth prospects in Europe.
Through May, the US trade deficit is running at an annual rate of US$474.8 billion, up by 26.6 percent from US$374.9 billion deficit for all of 2009. That had been the lowest annual trade gap since 2001, another year when the country was in recession.
The rise in the May deficit came despite the fact that oil imports dropped by 9.1 percent to US$27.6 billion as both the price of oil and the volume of shipments declined slightly.
The 2.4 percent rise in exports in May from April pushed sales of American goods and services to US$152.3 billion, the highest level since September 2008.
While sales of soybeans, wheat and other farm products fell in May, demand for American-made autos, industrial machinery, medical equipment and commercial aircraft all increased.
Imports increased 2.9 percent to US$194.5 billion, the highest level since October 2008, reflecting big gains in imports of cars, computers, oil drilling equipment and industrial machinery.
The deficit with the European Union rose 7.5 percent to US$6.2 billion as imports from Europe rose by 3.2 percent, outpacing a 1.9 percent rise in US exports to that region.
The concern is that American exports could falter in coming months if a debt crisis in Europe pushes that region back into recession.
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