News / Economy

US Trade Deficit Narrows as Exports Hit Record High

FILE - Trucks drive past piles of shipping containers at the Qingdao port in Qingdao, Shandong province, June 8, 2014.
FILE - Trucks drive past piles of shipping containers at the Qingdao port in Qingdao, Shandong province, June 8, 2014.
VOA News

The U.S. trade deficit narrowed a bit more than expected in May as exports jumped to a record high, and the U.S. unemployment rate dropped to its lowest level in nearly six years.

The Commerce Department said on Thursday the trade gap fell 5.6 percent to $44.4 billion, indicating the U.S. economy is benefiting from a strengthening global recovery, data released Thursday showed.

April's trade deficit was revised slightly down to $47.0 billion.

The narrowing of the trade deficit in May followed five straight months of increases.

"The improvement in U.S. exports seen in the May trade data suggests that the world economic recovery is gaining traction," said Tu Packard of Moody's Analytics, as reported by the French news agency AFP.

Exceeded expectations

Economists polled by Reuters had expected the trade deficit to narrow to $45 billion in May from a previously reported $47.2 billion shortfall, suggesting trade could be less of a drag on second-quarter growth than earlier feared.

When adjusted for inflation, the deficit narrowed to $51.96 billion from $53.88 billion in April.

Trade subtracted 1.5 percentage points from first-quarter gross domestic product. The economy contracted at a 2.9 percent annual pace in the first three months of the year.

In May, exports increased 1 percent to a record high of $195.5 billion. Exports were driven by a surge in automobiles, parts and engines, which rose to a record high. Exports of consumer goods were also the highest on record.

Imports fell 0.3 percent to $239.8 billion as petroleum imports tumbled to their lowest level since November 2010. Non-petroleum imports, however, hit a record high in May.

That points to an acceleration in domestic demand, which cannot be satisfied with locally produced goods, and is consistent with expectations of a rebound in growth in the second quarter.

The politically sensitive trade gap with China rose to $28.8 billion from $27.3 billion in April. 

U.S. Unemployment Rate, June 2014U.S. Unemployment Rate, June 2014
x
U.S. Unemployment Rate, June 2014
U.S. Unemployment Rate, June 2014

Jobless rate

Thursday's report from the Labor Department shows the unemployment rate falling two-tenths of a percentage point to hit 6.1 percent in June.

The study also shows a net gain of 288,000 jobs. The job growth and the unemployment rate are both better than economists had predicted.

An economic advisor to President Obama said it is the first time since 2000 the economy gained 200,000 jobs per month for five straight months.  But Jason Furman also said many families are still struggling with long-term unemployment and stagnant wages. 

Government experts said job growth was widespread, and strongest in professional services, retail, food services and health care.

The data could be seen as evidence that the world's largest economy is recovering from the effects of unusually harsh winter weather that hurt the economy in the first few months of this year.

The upbeat data encouraged investors, who pushed the Dow Jones Industrial Average above 17,000 for the first time.

During the past year, the number of people officially counted as unemployed is down by 2.3 million, but that still leaves 9.5 million people out of work.

Other job data was mixed. The number of Americans working part time because they cannot find full-time work rose, while the number of people out of work longer than 27 weeks declined.

Some information for this report provided by Reuters and AFP.

You May Like

Video Obama to Send 3,000 Troops to Liberia in Ebola Fight

At Centers for Disease Control and Prevention, President says US will take leadership role for a global response to deadly Ebola virus that is ravaging West Africa More

Video China Muslims Work to Change Perceptions After Knife Attacks

Muslims in Kunming say that they condemn the violence, it is not a reflection of the true beliefs of their faith More

Humanitarian Aid, Equipment Blocked in Cameroon

Move is seen as a developing supply crisis in West Africa More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
NASA Picks Boeing, SpaceX to Carry Astronauts Into Spacei
X
September 17, 2014 4:20 AM
The U.S. space agency, NASA, has chosen Boeing and SpaceX companies to build the next generation of spacecraft that will carry U.S. astronauts to the International Space Station by the year 2017. The deal with private industry enables NASA to end its dependence on Russia to send space crews into low Earth orbit and back. Zlatica Hoke has more.
Video

Video NASA Picks Boeing, SpaceX to Carry Astronauts Into Space

The U.S. space agency, NASA, has chosen Boeing and SpaceX companies to build the next generation of spacecraft that will carry U.S. astronauts to the International Space Station by the year 2017. The deal with private industry enables NASA to end its dependence on Russia to send space crews into low Earth orbit and back. Zlatica Hoke has more.
Video

Video Future of Ukrainian Former President's Estate Uncertain

More than six months after Ukraine's former President Viktor Yanukovych fled revolution to Russia, authorities have yet to gain control of his palatial estate. Protesters occupy the grounds and opened it to tourists but they are also refusing to turn it over to the state. VOA's Daniel Schearf reports from Mezhigirya, just north of Kyiv.
Video

Video China Muslims Work to Change Perceptions After Knife Attacks

China says its has sentenced three men to death and one woman to life in prison for a deadly knife attack in March that left more than 30 dead and 140 injured. Beijing says Muslim militants from China's restive western region of Xinjiang carried out the attacks. Now, more than six months after the incident, residents in the city are still coping with the aftermath. VOA's Bill Ide has more from Kunming.
Video

Video Enviropreneur Seeks to Save the Environment, Empower the Community

Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.
Video

Video Washington DC Mural Artists Help Beautify City

Like many cities, Washington has a graffiti problem. Buildings and homes, especially in low-income neighborhoods, are often targets of illegal artwork. But as we hear from VOA’s Julie Taboh, officials in the nation's capital have come up with an innovative program that uses the talents of local artists to beautify the city.
Video

Video US Muslim Leaders Condemn Islamic State

Leaders of America's Muslim community are condemning the violent extremism of the Islamic State group in Iraq and Syria. The U.S. Muslim leaders say militants are exploiting their faith in a failed effort to justify violent extremism. VOA correspondent Meredith Buel reports.
Video

Video Bedouin Woman Runs Successful Business in Palestinian City

A Bedouin woman is breaking social taboos by running a successful vacation resort in the Palestinian town of Jericho. Bedouins are a sub-group of Arabs known for their semi-nomadic lifestyle. Zlatica Hoke says the resort in the West Bank's Jordan Valley is a model of success for women in the region.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7722
JPY
USD
107.08
GBP
USD
0.6171
CAD
USD
1.1041
INR
USD
61.075

Rates may not be current.