Increasing US exports helped to narrow trade deficit

Increasing US exports helped to narrow trade deficit

The American trade deficit has been shrinking in May 3.8 % to USD 48.7 billion and exports (capital goods, industrial supplies and consumer goods) increased by 0.2 % and imports contracted 0.7 %

American wholesale inventories climbed 0.3 % to USD 484.1 billion and wholesales declined by 0.8 %. It would take 1.18 months to clear the inventories and it is the highest reading since July 2011.

American exports to the EU 27 rose surprisingly 2.6 % in May to USD 22.9 billion. In 2011 the EU has been the second largest market and exports in the first five months were growing three percent in comparison with the same period of 2011. The largest US export market is Canada. Also exports to China rose in May 5.2 % and that market has been one of the fastest growing markets for American goods. Exports were up 6 % in the first five months of the ongoing year. On the other hand America’s trade deficit with China widened in May to USD 26 billion, whereas in April the figure was USD 24.6 billion. In turn China’s trade surplus in total reached USD 31.7 billion in June. The US trade deficit with the EU rose in May to 10.5 billion and represents the highest figure since July 2008.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.