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
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