US trade deficit widens to $45 bn in May

The US trade deficit increased more than expected in May as imports surged and exports fell, official data released Wednesday showed.

The trade gap widened to $45.0 billion, up from a revised $40.1 billion in April, the Commerce Department reported.

It was the sharpest one-month increase in the US trade shortfall in more than two years,and the largest single-month deficit since November.

Analysts had expected the deficit to grow for a second consecutive month, but to a smaller $40.8 billion.

The US exported $187.1 billion in goods and services and posted imports of $232.1 billion.

In May, exports were $0.5 billion less than in April, while imports increased $4.4 billion.

The deficit was $1.2 billion lower than May 2012.

The three-month moving average deficit $40.8 billion, compared with $40.4 billion for the period ending in April.

Imports of automobiles and parts hit a record $26.0 billion, up 3.2 percent from April, while imports of food and beverages jumped 4.2 percent to $9.9 billion.

Crude oil imports, which account for about 10 percent of the country's imports, also weighed on the deficit, rising 3.2 percent to $22 billion.

At the same time, US exports were notably weakened by a 1.0 percent fall in food product exports to their lowest level in nearly three years, at $9.9 billion.

US petroleum product exports also declined, by 2.3 percent to $4.1 billion.

"This report makes it harder to see where the GDP acceleration comes from that the Fed is looking for," said Robert Brusca of FAO Economics.

The Federal Reserve has signaled it would begin to wind down bond purchases if the economy continued to improve. But economic growth was at a tepid annual rate of 1.8 percent in the first quarter and data has been mixed for the second quarter.

The political sensitive trade gap with China ballooned by 15.7 percent in May to $27.9 billion.

The Obama administration has been pushing China to adopt a less export-dependent economic model and allow its yuan currency to appreciate. Critics say Beijing keeps the yuan undervalued to gain an unfair trade advantage.

The US trade gap with the European Union, by contrast, fell 13 percent to $10.8 billion.

The US and EU are set to begin trade negotiations in July aimed at creating one of the world's largest free-trade blocs.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • ToyotaPH continues it’s strong sales in February
    ToyotaPH continues it’s strong sales in February

    Toyota Motor Philippines (TMP) sustains its strong sales in its February performance. Toyota’s strong performance last month was due to the  high demand of the Vios, with sales of 2,012 units and of course the rest of Toyota’s line up such as the Fortuner, Innova, Wigo, Hilux, Avanza and Corolla Altis. Toyota’s luxury brand, Lexus, recorded 60 units last month. …

  • No apology, but Noy seeks understanding
    No apology, but Noy seeks understanding

    There was no apology, but President Aquino yesterday expressed regret, took “full responsibility” and appealed to the nation for “deepest understanding” for the Jan. 25 Mamasapano raid in which dozens died, including 44 police Special Action Force (SAF) commandos. “To every Filipino who has felt failure or has been hurt because of the events related to this operation, it is with abiding humility that I ask for your deepest understanding,” Aquino said in a speech before the 246 new graduates of …

  • MVP on endorsement: Thanks, I’m no politician
    MVP on endorsement: Thanks, I’m no politician

    Businessman Manuel V. Pangilinan is grateful for Sen. Miriam Defensor-Santiago’s praise and presidential endorsement, but says he is not a politician. In an interview on the sidelines of the launch of the search for The Outstanding Young Men (TOYM) of the Philippines 2015 Wednesday night, Pangilinan dismissed the idea of running for president in the 2016 elections. “I’m not a politician, I’m just an ordinary business person,” he added. Santiago endorsed Pangilinan as a presidential candidate …

  • No Lenten break in operations vs lawless groups – AFP
    No Lenten break in operations vs lawless groups – AFP

    The Armed Forces of the Philippines (AFP) is not suspending its offensive against the Abu Sayyaf, New People’s Army (NPA) and other lawless groups during the Holy Week, an official said yesterday. Lt. Col. Harold Cabunoc, AFP public affairs office chief, said the AFP leadership is leaving it up to area and division commanders whether to raise the alert status in preparation for the Holy Week. Those deployed in areas where there are ongoing law enforcement operations against terrorist groups …

  • Probe harassment vs human rights lawyer, CA orders AFP
    Probe harassment vs human rights lawyer, CA orders AFP

    The Court of Appeals (CA) has ordered the Armed Forces of the Philippines (AFP) to investigate a human rights lawyer’s claim of harassment, including surveillance, by several military officers. In a 22-page decision, the former Special Sixth Division of the appellate court granted the petition for writ of amparo and habeas data of Maria Catherine Dannug-Salucon. The CA ordered the AFP to identify the officers behind the surveillance and file charges against them. The CA ruling said …

  • Noy vows to dismantle bata-bata system in PNP
    Noy vows to dismantle bata-bata system in PNP

    President Aquino vowed yesterday to dismantle the culture of factionalism or the bata-bata system within the Philippine National Police as he continued the search for the next PNP chief. Speaking at the Philippine National Police Academy (PNPA) commencement exercises here, the President said the country needed solidarity among leaders and members of the police force so that the policemen would be effective protectors of Filipinos. “Our challenge to the next chief of our national police force: …

  • Envoy to expats: Retire, invest in Phl
    Envoy to expats: Retire, invest in Phl

    Retire and invest in real estate in the Philippines, especially now that the country has made it to the top 10 retirement destinations in the world. This is the message being spread by the Philippine embassy in Washington, with Ambassador Jose Cuisia Jr. leading the refrain in meetings with various Filipino-American communities in the US. In his talks, Cuisia said that an affordable cost of living as well as warm climate and people are just some of the things that make the Philippines a top …

  • PNPA spotlight falls on Ampatuan grandson
    PNPA spotlight falls on Ampatuan grandson

    The stigma of being a namesake of the principal suspect in the 2009 Maguindanao massacre did not prevent Cadet First Class Andal Ampatuan III from entering and graduating from the Philippine National Police Academy (PNPA). Ampatuan III, now with a rank of police inspector, is a grandson of former Maguindanao governor Andal Ampatuan Sr. The younger Ampatuan was among the 246 graduates of the PNPA “Lakandula” Class of 2015. Ampatuan III’s mother is Bai Rebecca Ampatuan, a daughter of the …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options