April 19, 2024

U.S. Hit a Record for Exports in April

The Commerce Department report said that exports of goods were $126.4 billion and services $49.1 billion, while total imports were $219.2 billion, resulting in a trade deficit of $43.7 billion, the lowest since December. The deficit in March was revised down to $46.8 billion from $48.2 billion, the department said.

The gap had been forecast by some economists to widen to $48.8 billion.

In recent months, a weaker dollar has made goods from the United States less expensive overseas, while exports have also climbed in price as demand rose in developing countries.

The department said the March-to-April increase in exports of goods reflected greater sales of industrial supplies and materials, capital goods and consumer goods. The decline in imports was caused, in part, by a decrease in automotive parts, vehicles and industrial supplies and materials, the department said.

The data was the first to reflect the impact of the supply chain disruptions from the natural disasters in Japan, as well as the impact of commodity prices in April, when the average price per barrel of crude oil was $103.18. That was the highest since September 2008, when it was $107.30.

The United States imported 8.41 million barrels of crude per day on average in April, the lowest amount since last October.

Imports from Japan dropped by $3 billion, shrinking the American trade deficit with that country to $3.5 billion in April from $6 billion the month before.

The data also showed that the United States trade deficit with China continued to widen, to $21.6 billion in April from $18 billion in March, but still below January’s $23 billion. The trade deficit with China was $273 billion in 2010.

Meanwhile, the Labor Department said Thursday that the number of Americans who filed initial claims for unemployment edged higher in the week ending June 3, to 427,000, up by 1,000. Economists usually interpret any level above 400,000 to mean a lack of job growth.

Economists say that domestic demand in the United States is still weak. And while the rise in exports of goods was helping to offset that weakness, exports compose only about 9.6 percent of the country’s gross domestic product.

Thursday’s report was the first to reflect trade statistics for the second quarter, and economists gave a range of effects from the data on their estimates for gross domestic product.

Gregory Daco, the United States economist for IHS Global Insight, said the trade numbers helped raise the company’s estimate for real gross domestic product growth to slightly above 2 percent.

“Over all, this report was a good one for the U.S. economy,” he said.

Kevin Logan, the chief United States economist for HSBC, said forecasts should take into account that the deficit declined mostly because of a drop in oil imports of $3.7 billion, while the non-oil trade balance actually worsened.

“Normally, an improvement in the trade balance leads to an increase in estimates of G.D.P. growth in the quarter,” he said in a research note. “But if the trade balance is improving because of an across-the-board drop in demand for oil products, there should be little impact on G.D.P. growth.”

Economists from Capital Economics said that they expected little contribution to second-quarter growth.

“Pretty much all of the sharp fall in the trade deficit in April will eventually be reversed as the temporary effects caused by disruptions from Japan’s earthquake fade,” the economists said in a research note.

“Nonetheless, a modest positive contribution to second-quarter G.D.P. growth may at least offset part of the slowdown in other parts of the economy.”

Article source: http://feeds.nytimes.com/click.phdo?i=19fd806f891a82574f4d818cfab09cac

Trade Figures Give Stocks a Boost

Various economists said the smaller trade deficit for April, caused in part by a record amount of exports, could prompt upward revisions of gross domestic product growth in the second quarter.

In early afternoon trading, the Dow Jones industrial average had gained 111.52 points, or 0.9 percent, to 12,160.46. The Standard Poor’s 500-stock index rose 11.50 points, or 0.9 percent, to 1,291.06. The Nasdaq composite index added 13.05 points, or 0.5 percent, to 2,688.43 points.

The S. P. 500 posted its best day so far this month, but the mood remained fragile. with some analysts still expecting it to approach its March 2010 lows after falling more than 6 percent since a peak in May.

“We’re basically trading off technicals,” said William Larkin, a portfolio manager with Cabot Money Management in Salem, Mass. “We’re going to be in a very active trading range, and we just need a couple of key warnings — on consumer confidence, energy prices, whatever — and markets could continue to weaken.”

Energy shares were among the biggest gainers as crude oil rose. The S. P. 500’s energy sector rose 1.2 percent.

Wall Street stocks have held in a pattern recently of selling off in the second half of the day as investors look for a bottom.

The American trade deficit narrowed unexpectedly in April, as exports rose to a record and imports from Japan tumbled more than 25 percent in the aftermath of the March earthquake, tsunami and nuclear disaster, a government report showed Thursday.

The number of Americans filing new claims for unemployment benefits rose by 1,000 last week, however, according to a report Thursday that could add to fears the labor market recovery has stalled.

Among individual stocks, Texas Instruments cut its earnings and revenue forecasts, blaming the shortfall on the ailing business of Nokia, a major customer. Shares of Texas Instruments rose 0.7 percent to $32.89

Article source: http://feeds.nytimes.com/click.phdo?i=67fe752021a7a2814268fbdabfc59537