US import recovery leads to widening trade deficit

Imports and Exports | | MIC Customs Solutions |

US import figures saw a recovery during April 2016, with the country's trade deficit widening as a consequence.

The latest trade data from the US has seen a recovery in its import performance during April 2016, albeit at the cost of widening the trade deficit.

Imports of goods rose an unadjusted 1.9 per cent compared to the figure for March, which was attributed to a recovery in purchases from China following the end of a local holiday period.

Exports, meanwhile, grew at a rate of 2.4 per cent during the month, resulting in a trade gap in goods of $57.5 billion (€51.38 billion) last month. This follows a $55.6 billion goods trade deficit in March.

Although the higher deficit results in a greater subtraction from GDP for the period, the overall outlook for the economy is improving, with the country's GDP growth set to accelerate to 2.6 per cent in the second quarter, compared to 0.6 per cent in Q1.

Millan Mulraine, deputy chief US macro strategist at TD Securities, said: "The overall tone of this report was encouraging, as the rebound in both import and export activity points to some positive movements in global trade activity after signs of relapse earlier this year."