Retailer Daily

Trade Deficit Growth Slows

The U.S. trade deficit grew 2.4% in April 2009, about half of its roughly 5% increase in March 2009. According to the Bureau of Economic Analysis, total U.S. exports of goods and services for the month were $121.1 billion and total U.S. imports were $150.3 billion, leaving a $29.2 billion deficit. In March 2009, the revised deficit was $28.5 billion. This figure consisted of $123.9 billion in exports and $152.2 billion in imports. Total U.S. exports declined 2.2% in April, while total U.S. imports declined 1.2%. On the goods side of the deficit, exports and imports both declined in April. Goods exports declined from $82.6 billion to $80 billion, a 3.1% drop; while goods imports declined from $121.8 billion to $120.1 billion, a 1.4% drop. The March to April decrease in exports of goods reflected a $1.3 billion decline in industrial supplies and materials, a $1.1 billion drop in capital goods, a $500 million decline in consumer goods, and $200 million declines in other goods and automotive vehicles, parts, and engines. A $300 million increase occurred in foods, feeds, and beverages, The March to April decrease in imports of goods reflected a $900 million decrease in capital goods, a $700 million drop in industrial supplies and materials, a $300 million decline in other goods, and $100 million declines in automotive vehicles, parts, and engines and in foods, feeds, and beverages. A $400 million increase occurred in consumer goods. For the three months ending in April, exports of goods and services averaged $123.8 billion, while imports of goods and services averaged $151.7 billion, resulting in an average trade deficit of $27.9 billion. For the three months ending in March, the average trade deficit was $30.4 billion, reflecting average exports of $125.1 billion and average imports of $155.5 billion. Recent news on consumer statistics have been mostly positive. Positive developments include a 0.5% increase in May 2009 U.S. retail sales, the Employment Trends Index increasing from 89.7 in April 2009 to 89.9 in May 2009, its first improvement since February 2008. In addition, consumers’ personal income grew in April 2009, although consumer spending decreased. In May, the Consumer Confidence Index improved by 14.1 percentage points, and the April Restaurant Performance Index hit 98.6, largely aided by impressively high future expectations of restaurant retailers. One big negative is the continuing rise in the U.S. unemployment rate, which hit 9.4% in May 2009.