Retailer Daily

Trade Deficit Dwindles

In May 2009, the U.S. trade deficit in goods and services shrank 9.7%, from $28.8 billion to $26 billion. According to the Bureau of Economic Analysis, imports of goods and services totaled $149.3 billion and exports of goods and services totaled $123.3 billion. May exports increased 1.5%, while May imports decreased 0.5%. The goods deficit decreased 6.5%, from $39.9 billion to $37.3 billion. Exports of goods increased 2.5%, from $80.1 billion to $82.1 billion, and imports of goods decreased 0.4%, from $119.9 billion to $119.4 billion. $0.5 billion. The April to May increase in exports of goods reflected increases in industrial supplies and materials ($2.1 billion), foods, feeds, and beverages ($0.3 billion), consumer goods ($0.2 billion), and capital goods ($0.1 billion). A $0.4 billion decrease occurred in automotive vehicles, parts, and engines, and other goods were virtually unchanged. The April to May decrease in imports of goods reflected decreases in industrial supplies and materials ($0.7 billion), automotive vehicles, parts, and engines ($0.2 billion), and consumer goods ($0.1 billion). Increases occurred in capital goods ($0.3 billion), other goods ($0.2 billion), and foods, feeds, and beverages ($0.1 billion). For the three months ending in May, exports of goods and services averaged $122.9 billion, while imports of goods and services averaged $150.6 billion, resulting in an average trade deficit of $27.8 billion. For the three months ending in April, the average trade deficit was $27.8 billion, reflecting average exports of $123.9 billion and average imports of $151.7 billion. In May 2009, the goods and services deficit decreased 57% from May 2008, dropping from $60.6 billion. Exports were down $33.3 billion, or 21.3%, and imports were down $67.9 billion, or 31.3%. Recent consumer financial news has been mixed. Consumer credit decreased at a seasonally adjusted annual rate of 1.5% in May 2009, while borrowing figures for April 2009 show that U.S. consumers decreased borrowing by 16%. In addition, during May 2009, U.S. consumers saved $768.8 billion, a 26.3% increase from the $608.5 billion saved in April. Personal saving as a percentage of disposable income was 6.9% in May, compared with 5.6% in April. Similar jumps in total personal saving figures and percentages occurred between March and April 2009. Consumers’ personal consumption expenditures, which essentially reflect consumer spending, increased 0.3% in May. Meanwhile, U.S. retail and food services sales in May 2009 climbed 0.5%. The U.S. unemployment rate rose from 9.4% in May to 9.5% in June. In addition, the Consumer Confidence Index fell from 54.8 in May to 49.3 in June. In another negative economic sign, the RPI (Restaurant Performance Index) slid from 98.6 in April 2009 to 98.3 in May 2009, registering its first decline since December 2008.