U.S. trade deficit increases 15.1 percent in May

[News_Editor]

U.S. trade deficit increases 15.1 percent in May

2011-07-13 20:23:15 GMT+7 (ICT)

WASHINGTON, D.C. (BNO NEWS) -- U.S. exports reached $174.9 billion in goods and services in May, which is a decrease of 0.5 percent compared to the previous month, according to data released by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

With imports reaching $225.1 billion, a 2.6 percent increase, the U.S. deficit in goods and services totaled $50.2 billion in May, up from $43.6 billion in April's revised figures. This is a deficit increase of 15.1 percent from April to May. In addition, May exports were $1 billion less than April's $175.8 billion, while its imports were $5.6 billion more than the $219.4 billion recorded the previous month.

The BEA report also showed that U.S. exports were 24.3 percent above the level of total exports in 2009, as exported goods and services over the last 12 months totaled $1.96 trillion. Monthly exports of services reached $49.7 billion, which was a record high, while the monthly export value for U.S. capital goods ($41.4 billion) was also the highest on record.

"While exports dipped slightly in May, exports have been growing at a strong pace overall in the first five months of 2011, up 16.4 percent compared to the same period last year," said U.S. Commerce Secretary Gary Locke. "We're making progress but we still have a way to go," he added, stating that accelerating job growth remains a priority for the Obama administration.

"We will continue to provide our businesses with the necessary tools to compete and win globally and create more American jobs. As we move closer to reaching the president's goal of doubling exports by 2015, the Obama administration will continue to help businesses reach the 95 percent of consumers who live outside our borders," Locke said.

Exports have had an annualized growth rate of 16.6 percent during the last twelve months, compared to 2009, a pace greater than the 15 percent required to double exports by the end of 2014, which is the goal of President Barack Obama's National Export Initiative (NEI).

Among the major export markets during the past 12 months (those with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. purchase of goods when compared to 2009, occurred in Turkey (53.6 percent), South Africa (37.8 percent), Panama (35.1 percent), Peru (34.9 percent), Argentina (33.5 percent), Brazil (32.3 percent), Taiwan (32.2 percent), Thailand (29.8 percent), Hong Kong (29.7), and Egypt (29.0 percent).

"Increasing U.S. exports is a critical part of our economic recovery," said Ex-Im Chairman & President Fred P. Hochberg. "We are on track to double U.S. exports by the end of 2014."

Meanwhile, the Export-Import Bank of the United States (Ex-Im Bank) completed $20.3 billion in total authorizations for the first eight months of the current fiscal year (October 2010 through May), supporting $26 billion in U.S. exports and more than 175,000 American jobs.

This eight-month authorization figure is the highest in the Bank's history. In fiscal year 2010, Ex-Im Bank approved $16.3 billion in this same time period, supporting $19.9 billion in U.S. export sales and supporting 137,000 American jobs.

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