US trade gap widens to largest in 18 months
US consumption has been more resilient than anticipated even as the central bank rapidly hiked interest rates to dampen demand
THE US trade deficit expanded slightly less than analysts expected in April, to the widest since late 2022, as imports rose more quickly than exports, according to government data released on Thursday (Jun 6).
The overall gap was US$74.6 billion, growing from March’s revised US$68.6 billion figure, said the Commerce Department.
This was the largest deficit since October 2022, according to official data.
US consumption has been more resilient than anticipated even as the central bank rapidly hiked interest rates to dampen demand – and this has helped to support imports.
But with weaker global demand, there have been concerns that export growth would not be able to keep up.
Investors are also watching the Federal Reserve for the outcome of its policy meeting next week, looking for hints on when it might start cutting interest rates.
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In April, imports grew by 2.4 per cent to US$338.2 billion, while exports rose by 0.8 per cent to US$263.7 billion.
The jump in imports was largely due to an increase in goods such as automotive vehicles, said the Commerce Department.
Goods exports, meanwhile, also picked up but by a smaller degree, with a rise seen in products like pharmaceutical preparations and electric apparatus, data showed.
The goods deficit with China, a point of contention in US-China competition, dropped by US$2.5 billion to US$22.1 billion in April.
This was mainly due to a decrease in imports. AFP
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