Last Update: 03-Jul-19 09:29 ET
- The U.S. trade deficit widened to $55.5 billion in May (Briefing.com consensus -$54.4B) from a downwardly revised $51.2 billion (from -$50.8 billion) in April.
- Exports were $4.2 billion more than April exports while imports were $8.5 billion more than April imports.
- TThe boost in imports was led by automotive vehicles, parts, and engines (+$2.3 billion), industrial supplies and materials (+$1.8 billion), and capital goods (+$1.6 billion), which may have been spurred by concerns over possible tariff increases in coming months.
- Export growth was paced by capital goods (+$1.4 billion) and consumer goods (+$0.8 billion).
- The trade deficit with China increased to -$30.1 billion in May from -$29.4 billion in April while the trade deficit with the EU increased to -$16.9 billion from -$15.1 billion.
- The key takeaway from the report is that the average real trade deficit in the second quarter is 2.3% greater than the first quarter average, which is a negative for the Q2 GDP growth outlook.