Trade Deficit Fell To $48.7 Billion In May

Bloomberg News (7/12, Chandra) reports, "The trade deficit in the US narrowed in May as falling crude oil prices and weakening demand for consumer goods trimmed the import bill." The trade gap fell 3.8 percent to $48.7 billion, according to the Commerce Department. "Slowing global growth, which led central banks from Europe to China to cut interest rates and announce more stimulus a week ago, may signal American companies will have a harder time boosting overseas sales. At the same time, an increase in imports of business equipment indicates sustained investment in the US, and more inbound shipments of cars point to continued strength in the auto industry. "

The AP (7/12, Crutsinger) reports, "Exports rose 0.2 percent to $183.1 billion. The increase reflected stronger sales of telecommunications equipment and heavy machinery. Exports to the 27-nation European Union rose 2.6 percent in May from April." Imports fell "0.7 percent to $231.8 billion. The amount the US spent on imported oil fell to the lowest level in 15 months."

IndustryWeek (7/12, Minter) reports, "The April to May increase in exports of goods reflected increases in foods, feeds, and beverages ($0.9 billion) and capital goods ($0.7 billion). Decreases occurred in industrial supplies and materials ($0.8 billion); consumer goods ($0.2 billion); and automotive vehicles, parts, and engines ($0.1 billion). Other goods were virtually unchanged." The April to May drop "in imports of goods reflected decreases in industrial supplies and materials ($3.6 billion); consumer goods ($0.4 billion); and foods, feeds, and beverages ($0.1 billion). Increases occurred in capital goods ($1.4 billion); automotive vehicles, parts, and engines ($0.7 billion); and other goods ($0.3 billion)."

The Wall Street Journal (7/12, Barkley, Morath, Subscription Publication),Reuters (7/12, Lange), MarketWatch (7/12, Bartash), BBC News (7/12), the UK's Financial Times (7/11, Bond, Subscription Publication) and other media sources also covered the story.