RTTNews - With the value of exports falling by more than the value of imports in the month of April, the Commerce Department released a report Wednesday morning showing that the U.S. trade deficit for the month came in modestly wider than in March.
The report showed that the trade deficit widened to $29.2 billion in April from a revised $28.5 billion in March. Economists had expected the deficit to widen to $29.0 billion from the $27.6 billion originally reported for the previous month.
While the trade deficit for April came in wider than in March, the trade deficit for the period from January through April came in at $120.4 billion, much narrower than the deficit of $244.8 billion in the same period last year.
The wider deficit for the month of April came as the value of exports fell 2.3 percent to $121.1 billion from $123.9 billion in March, exceeding the drop in the value of imports, which fell 1.4 percent to $150.3 billion from $152.5 billion.
Commerzbank economist Christoph Balz said the drop in both exports and imports is indicative that the massive contraction of global trade has not stopped yet but at least seems to be losing momentum recently.
We expect exports and imports to fall less steeply in the coming months as the global economy starts to stabilize, Balz added.
The Commerce Department also said that the goods deficit widened to $40.1 billion in April from $39.2 billion in March, while the services surplus edged up to $10.9 billion from $10.7 billion in the previous month.
Additionally, the report showed that the politically sensitive trade deficit with China widened to $16.8 billion in April from $15.6 billion in March.
Some additional trade-related data is due to be released on Friday, with the Labor Department scheduled to release its report on import and export prices in the month of May.
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