Current economic indicators table

Trade deficit widens

Latest available: April 2008
Release date: June 10, 2008

The U.S. international trade deficit widened to US$60.9 billion in April from a revised US$56.5 billion (prior US$58.2 billion). Going into the April release, the deficit was expected to widen to US$60 billion from March's initially reported level.

Imports jumped 4.5% in April after dropping 3.3% in March. Exports increased 3.3%.  Exports have increased for 13 of the past 14 months. The increase in exports reflected gains in automotive and aircraft exports and exports of civilian aircraft.  Imports of capital goods, autos and parts, and civilian aircraft all increased in April.

The real (chained 2000 dollars) goods deficit was 5.3% higher in April than its first quarter average.  This is consistent with our forecast calling for net trade to be a source of support to growth this year.  Exports will likely continue to be boosted by the past depreciation in the U.S. dollar and slower, but still decent, global growth.  U.S. domestic demand is likely to remain weak this year.  Our current forecast calls for it to advance at a paltry 0.8% rate. This will place downward pressure on import growth.