WASHINGTON — The April trade balance came in at a $40.9 billion deficit, better than expected, and its best improvement since February 2009. The trade balance was a $50.6 billion shortage in March after revision.
This suggests trade will add at least a little to Q2 real growth. The trade sector cut 1.9 points from Q1 real GDP, and a rebound, or at least a more neutral reading should be expected.
Imports declined $7.8 billion in April after they surged in March, with ports reopening. April imports of consumer goods at -$4.9 billion was mainly responsible.
Imports of cell phones fell $1.3 billion, and apparel posted $932 million lower, footwear dropped $750 million, and furniture declined $715 million. Imports of capital goods, autos and industrial supplies also fell.
Exports posted a $1.9 billion increase as civilian aircraft gained $1 billion and telecommunications rose $600 million.
The adjusted goods trade balances by country included: China a $27.5 billion deficit after a $38.9 billion shortage in March, Japan a $6.7 billion shortfall after a $6.3 billion deficit, and OPEC a $485 million surplus after an $892 million surplus. The latter came as the April petroleum deficit hit its lowest since March 2002. In contrast, imports from other places in Asia and from the U.K. hit new highs.
Overall, the early Q2 trade data probably should be discounted as another seesaw. But the one-month math still suggests a slightly better beginning place than in Q1.
The Commerce Department also revised trade data in goods back to 2012 and services to 1999. These did not change the overall trend toward huge imports and large deficits. But the altered data increased the 2013-14 trade deficits, while revising 2012 downward by 0.2%.
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