As exports fell and imports increased in April, the U.S. trade imbalance expanded dramatically, placing downward pressure on the country’s economic growth but showing that consumer demand for products is still high.
In April, exports decreased by 3.6 percent to $249 billion, with shipments of medicines and crude oil down the most. Down to $167.1 billion, exports of goods decreased by $9.4 billion. Services exports increased by $200 million to $81.9 billion, driven by growth in business and foreign travel services, which was slightly offset by reductions in banking and government services.
The value of goods imported rose by $5.2 billion to $263.2 billion. Automotive cars, components, and engines grew by $2.0 billion, showing a boom in automobile purchasing in the United States, which has also boosted domestic vehicle sales. Imports of home items and cellphones climbed by $1.7 billion. The decline in service imports was mostly due to declines in travel and transportation services.
The gross domestic product is reduced by larger deficits. Large fluctuations in the trade deficit over the last two years have played a significant role in the instability of this official scorecard of the American economy.
In the next months, imports are anticipated to diminish as consumer spending declines and continues to move from domestic services to products.
A stronger dollar makes imports less costly in the United States and increases the cost of exports overseas, increasing the trade imbalance.
The highest trade difference in April was with China, totaling $24.2 billion.
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