WASHINGTON. June 8, 2024 (Reuters/AFP) — The U.S. trade deficit widened in April as a jump in imports outpaced a slight increase in exports. The trade deficit increased 8.7% to $74.6 billion, the Commerce Department’s Bureau of Economic Analysis said on Thursday. This was the largest deficit since October 2022, according to official data.
Data for March was revised to show the trade gap narrowing slightly to $68.6 billion instead of the $69.4 billion as previously reported. Economists polled by Reuters had forecast the deficit would rise to $76.1 billion in April. The economy grew at a 1.3% annualized rate last quarter after expanding at a 3.4% pace in the October-December period. Imports rose 2.4% to $338.2 billion in April. Goods imports rose $8.1 billion to $271.9 billion.
There were increases in imports of motor vehicles and parts and capital goods such as computer accessories and telecommunications equipments, as well as industrial supplies and materials, which include crude oil. Services imports edged down $0.1 billion to $66.3 billion. Exports edged up 0.8% to $263.7 billion. Goods exports increased $2.2 billion to $172.7 billion. There were increases in exports of capital goods and consumer goods, while industrial supplies and materials fell. Exports of services declined $0.2 billion to $172.7 billion.
“The early data are pointing to a drag from trade in the second quarter,” said Rubeela Farooqi, chief US economist at High Frequency Economics. “Imports have been supported by strong domestic demand and lean inventories,” said Matthew Martin, US economist at Oxford Economics. “Exports have contended with a weaker global backdrop and a strong dollar which makes domestic goods relatively more expensive abroad,” he added.
The goods deficit with China, a point of contention in US-China competition, dropped by $2.5 billion to $22.1 billion in April. This was mainly due to a decrease in imports.