US trade deficit jumps to $60.9 billion
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A surge in imports and skyrocketing oil prices pushed the US trade deficit in April to $60.9 billion, government data showed on Tuesday.
The monthly jump in the trade gap by 7.8 per cent was the largest since September 2005 and was higher than economists' estimates of $60 billion.
The Commerce Department report showed a surge of $9.4 billion in imports, including $5.4 billion for oil and related products, outstripping the increase in exports of $5.0 billion.
The politically sensitive trade deficit with China leapt 25.9 per cent to $20.2 billion, representing one-third of the overall gap.
The other big factor, petroleum, accounted for $34.5 billion of the overall deficit. That was the second highest on record after the gap posted in January 2008.
The agency revised down its estimate for the March trade deficit to $56.5 billion from an initial report of 58.2 billion.
The big US deficit is a factor in the weak dollar because it results in an outflow of cash from the United States, requiring foreign sellers to accept a growing amount of dollars. A high deficit also can result in weaker US economic growth by transferring output abroad.
US exports saw the biggest change since February of 2004, driven by a $2.2 billion rise in capital goods, 769 billion of which was civilian aircraft. The value of Boeing's foreign deliveries rose 20 per cent in April and the ups and downs of its sales are frequently the single biggest monthly change in US exports.
Overall, April goods and services exports amounted to $155.5 billion and imports 216.4 billion.
The goods deficit increased to $72.9 billion, offset in part by a surplus in services of 12.0 billion.
Among the factors in the rising deficit were a 5.6 billion dollar increase in imports of industrial supplies, a $1.2 billion jump in capital goods and rise of $1.0 billion in autos and parts.
The deficit with China roared back in April after a dip in March, despite tough talk from some US officials and lawmakers who argue that China needs to do more to increase the value of its currency and implement fairer trading rules.
Aside from China, the deficit with the European Union rose 14 per cent to $8.5 billion and increased 18.6 per cent with Canada to $7.6 billion. The gap with OPEC countries rose 10.5 per cent to $15.6 billion.
The monthly jump in the trade gap by 7.8 per cent was the largest since September 2005 and was higher than economists' estimates of $60 billion.
The Commerce Department report showed a surge of $9.4 billion in imports, including $5.4 billion for oil and related products, outstripping the increase in exports of $5.0 billion.
The politically sensitive trade deficit with China leapt 25.9 per cent to $20.2 billion, representing one-third of the overall gap.
The other big factor, petroleum, accounted for $34.5 billion of the overall deficit. That was the second highest on record after the gap posted in January 2008.
The agency revised down its estimate for the March trade deficit to $56.5 billion from an initial report of 58.2 billion.
The big US deficit is a factor in the weak dollar because it results in an outflow of cash from the United States, requiring foreign sellers to accept a growing amount of dollars. A high deficit also can result in weaker US economic growth by transferring output abroad.
US exports saw the biggest change since February of 2004, driven by a $2.2 billion rise in capital goods, 769 billion of which was civilian aircraft. The value of Boeing's foreign deliveries rose 20 per cent in April and the ups and downs of its sales are frequently the single biggest monthly change in US exports.
Overall, April goods and services exports amounted to $155.5 billion and imports 216.4 billion.
The goods deficit increased to $72.9 billion, offset in part by a surplus in services of 12.0 billion.
Among the factors in the rising deficit were a 5.6 billion dollar increase in imports of industrial supplies, a $1.2 billion jump in capital goods and rise of $1.0 billion in autos and parts.
The deficit with China roared back in April after a dip in March, despite tough talk from some US officials and lawmakers who argue that China needs to do more to increase the value of its currency and implement fairer trading rules.
Aside from China, the deficit with the European Union rose 14 per cent to $8.5 billion and increased 18.6 per cent with Canada to $7.6 billion. The gap with OPEC countries rose 10.5 per cent to $15.6 billion.
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