This will subtract from second-quarter GDP estimates.
Advance International Trade in Goods
The international trade deficit was $67.6 billion in April, up $2.5 billion from $65.1 billion in March. Exports of goods for April were $125.9 billion, $1.1 billion less than March exports. Imports of goods for April were $193.4 billion, $1.4 billion more than March imports.
Economists Miss the Mark
Econoday economists expected the trade deficit to narrow to $64.6 billion in a range of $65.5 billion to $62.0 billion.
Not only did economists miss the mark with the deficit larger than the biggest estimate, the Cenmsus Bureau revised the deficit for April slightly higher, from $64.8 billion to $65.1 billion.
A key early indication on the strength of second-quarter GDP is not favorable as the nation’s goods deficit widened $2.5 billion in April to $67.6 billion. Exports of goods continue to show weakness, down 0.9 percent in the month to $125.9 billion that show sharp declines for vehicles and consumer goods. Imports of goods, which are a subtraction in the national accounts, rose 0.7 percent in the month to $193.4 billion with consumer goods and agriculture both rising.
The much ballyhooed second quarter recovevery is off to a negative start.
Mike “Mish” Shedlock