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- U.S. trade deficit widens slightly more than forecast in April
U.S. trade deficit widens slightly more than forecast in April
The U.S.
Commerce Department reported on Thursday that U.S. the goods and services trade
deficit widened to $49.4 billion in April from a revised $42.3 billion in the
previous month (originally a gap of $44.4 billion). That was the biggest trade
gap since August 2019.
Economists had
expected a deficit of $49.0 billion.
According to
the report, the April advance in the goods and services deficit reflected an
increase in the goods deficit of $5.8 billion to $71.8 billion and a decline in
the services surplus of $1.3 billion to $22.4 billion.
In April, exports
of goods and services from the U.S. plunged 20.5 percent m-o-m to $151.3
billion (the lowest level since April 2010), while imports tumbled 13.7 percent
m-o-m to $200.7 billion (the lowest level since July 2010), in part, due to the
impact of COVID-19, as many businesses were operating at limited capacity or
ceased operations completely, and the movement of travelers across borders was
restricted.
Year-to-date,
the goods and services deficit decreased 13.4 percent from the same period in
2019. Exports fell 9.5 percent, while imports dropped 10.2 percent.
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