A report released by the Commerce Department Thursday showed the U.s. trade deficit increased by a little more than expected in the month of April.
The Commerce Department said the trade deficit widened to $ 49.4 billion in April, from a revised $42.3 billion in February.
Economists had expected the trade deficit to widen to $49.0 billion from $44.4 billion originally reported for the previous month.
The wider than expected trade deficit came as a fall in the value of exports exceeded a fall in the value of imports.
The value of exports fell by 20.5 percent to $151.3 billion, reflecting a significant decline in exports of capital goods, industrial supplies and materials and automotive vehicles, parts and engines.
During this time, the report indicates that the value of imports declined by 13.7% to reach a total of 200.7 billion dollars in the middle of large declines in imports of motor vehicles, parts and engines, capital goods and consumer goods.
“The closure of motor vehicle production plants in North America, has played the biggest role in the downfall of the trade,” said Paul Ashworth, Chief U. s. economist at Capital Economics. “Services trade and it has been hit by further declines in travel and transportation.”
“Services and trade” is not going to rebound any time soon, with the border partially closed, but the reopening of motor vehicle production plants in mid-May, we should see a rebound over the next few months,” he added.
The Department of Commerce has indicated, the goods deficit widened to $ 71.8 billion in April from $ 66.0 billion in January, while the services surplus fell to $22.4 billion to $23.7 billion.
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