Trade gaps widens in April as oil prices surge
The U.S. trade deficit widened more than expected in April as the price of imported oil hit a record, pushing overall imports to an all-time high, a Commerce Department report showed on Tuesday.
The monthly trade gap grew nearly 7.8 percent to $60.9 billion from a downwardly revised $56.5 billion in March. The gain was the biggest since September 2005, despite a healthy 3.3 percent rise in exports to a record $155.5 billion.
Wall Street analysts had forecast a smaller rise in the trade gap to $59.9 billion, from the previous March figure of $58.2 billion.
The trade data could boost estimates of first-quarter U.S. economic growth, but weigh on the second quarter, one analyst said.
“We had a big downward revision in the March figure which is good for the first-quarter GDP, but the April number spells badly for the second quarter,” said Lou Brien, market strategist at DRW Trading in Chicago.
Average prices for imported oil rose $6.96 per barrel in April, the second biggest increase on record payday loans online. Imports from Saudi Arabia, Venezuela and other members of the Organization of Petroleum Exporting Countries totaled a record $20.9 billion.
Overall U.S. imports of goods and services were a record $216.4 billion, and showed their biggest one-month gain since November 2002. Although oil accounted for much of the increase, imports of autos and capital goods bounced back from a drop in March.
U.S. exports also rebounded to a record $155.5 billion in April after retreating slightly in March. The month-to-month rise was the biggest in more than four years.
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