US April Trade Deficit Hits $74.6 Billion... Largest in 6 Months

The U.S. Department of Commerce announced on the 7th (local time) that the trade deficit in goods and services for April surged 23% from the previous month to $74.6 billion. This is the largest deficit in six months since October last year. However, it slightly missed Wall Street's forecast of $75.8 billion.

Imports in April rose 1.5% from the previous month to $323.6 billion. By category, imports of automobiles, mobile phones, and parts increased. On the other hand, exports during the same period fell 3.6% to $249.0 billion. Exports of crude oil and consumer goods were sluggish.

The widening U.S. trade deficit is expected to be a negative factor for the second quarter's Gross Domestic Product (GDP). The politically sensitive trade deficit with China slightly increased to $24.2 billion compared to the previous month.