WASHINGTON — The U.S. May balance narrowed to a $59.8 billion deficit as imports rose $700 million and exports advanced $1.4 billion. The revised April trade balance was a $60.5 billion deficit.
In imports, oil and related items fell $1.2 billion and autos posted a $842 million decline. Exports printed their gain as oil and related products advanced $1.3 billion, evidently as the U.S. re-exported more high-margin refined petroleum products, and civilian aircraft rose $312 million.
The quantity of imported crude fell as the average price rose $9.47 to another record $106.28 a barrel.
By country, unadjusted trade balances were: China, $21 billion deficit in May after a $20.2 billion gap in April; Japan, a $5 billion shortage after a $7.6 billion deficit; and OPEC, a record $17.9 billion deficit after a $15.6 billion gap.
Any boost to the dollar or stocks from this data should prove temporary.
Rising oil prices are more generally a drag on U.S. growth. In addition, the U.S. appears to depend on cheap imported household goods from China. These factors should reverse any favorable trade readings in the future.
— Market News International
