The US trade deficit widened by less than expected in April to $63.4 billion, as oil import prices surged close to historic highs and US exports turned in a near record performance.
Wall Street analysts had expected the trade gap to widen to $65 billion, driven by crude oil prices that surpassed $71 per barrel in April on the back of strong world demand and international tensions over Iran.
Although the monthly change was less than expected, the trade gap still grew 2.5% from a slightly revised estimate of $61.9 billion in March. In the first four months of this year, the trade gap totalled $254.2 billion, on pace to surpass the record of $716.7 billion set for all of last year.
Average prices for imported oil in April hit $56.82 per barrel, up nearly 9% from March and second only to the record of $57.42 set in September 2005, the Commerce Department said.
A Labor Department report showed that prices for imported goods rose 1.6% in May, which was more than twice expectations, as the cost of petrol and industrial supplies climbed. The price data added to inflation concerns that could prompt the Federal Reserve to again raise interest rates.
April imports grew 0.7% from the previous month to $179.1 billion, the second highest on record. Imports of capital goods, such as computers and computer accessories, telecommunication equipment and industrial machines, hit a record while other categories such as cars and consumer goods were near records.
US exports, reflecting stronger growth overseas and a decline in the value of dollar in recent years, came to $115.7 billion in April, just shy of the record high set in March. But the politically sensitive trade gap with China widened in April to $17 billion.
