Exports Soft In May, Imports Rise

Goods exports were soft in May while at the same goods imports rose, making for a widening in the nation's goods gap to $60.6 billion from April's $57.5 billion. Exports fell 0.2 percent reflecting declines in auto exports and, unfortunately, capital goods exports as well. Imports rose a sharp 1.6 percent with imports of consumer goods especially strong in a gain that points to business confidence in U.S. retail expectations. Imports of industrial supplies show a large gain made larger by upward price effects tied to oil. But like the export side, capital goods imports were weak hinting at contraction in business investment and continuing trouble for productivity growth. Though the import data is consistent with strong domestic demand, exports point to soft global demand. Note also that the widening of May's gap is a negative for second-quarter GDP.

Recent History Of This Indicator:
Exports and imports of goods both rose sharply in April pointing to much needed improvement in cross-border demand. Higher oil prices made for related gains on both sides of the ledger though other areas, including autos and also capital goods also showed gains. Forecasters see a widening in the goods deficit for May, to $59.3 vs $57.5 billion in April.