By Yara Abi Farraj
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U.S. trade deficit rises 8.7 percent to $74.6 billion in April

Exports saw a slight 0.8 percent increase to $263.7 billion with goods exports rising to $172.7 billion
U.S. trade deficit rises 8.7 percent to $74.6 billion in April
The data also revealed that U.S. imports saw a 2.4 percent increase to $338.2 billion in April with good imports rising $8.1 billion to $271.9 billion

U.S. trade deficit widened in April by 8.7 percent to $74.6 billion, the widest since October 2022, due to the increase in imports outpacing the slight increase in exports. The Department of Commerce‘s Bureau of Economic Analysis also revised March’s data, which revealed a slight narrowing in the U.S. trade deficit to $68.6 billion instead of the $69.4 billion as previously reported.

The data also revealed that U.S. imports saw a 2.4 percent increase to $338.2 billion in April with goods imports rising $8.1 billion to $271.9 billion. The U.S. also saw an increase in imports of motor vehicles and parts, capital goods such as computer accessories and telecommunications equipment, and industrial supplies and materials including crude oil. Meanwhile, services imports saw a $0.1 billion decline to $66.3 billion.

On the other hand, exports saw a slight 0.8 percent increase to $263.7 billion with goods exports rising $2.2 billion to $172.7 billion. In addition, exports of capital goods and consumer goods saw an increase while exports of industrial supplies and materials declined. Exports of services also declined $0.2 billion to $172.7 billion.

Notably, the goods deficit with China dropped by $2.5 billion to $22.1 billion in April, mainly due to a decline in imports.

Read: Australia’s trade surplus recovers to $4.34 billion in April as imports fall 7.2 percent

U.S. consumption has been more resilient even amid high interest rates, which aim to dampen demand and support imports. However, weaker global demand has raised concerns over export growth. Investors now are closely watching the Federal Reserve’s policy meeting next week for hints on the potential timing of its next rate cut.

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